Competing in the global LNG market: Evolving Canada's opportunity into reality

How EY can help

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There’s no denying Canada’s potential in the global LNG market, but success for players won’t come easily. Canada faces significant competition from projects around the world. Carving out a piece of the LNG demand pie will require Canadian projects to address five key factors impacting competitiveness: global competition, First Nations, capital allocation, fiscal policy and people, processes and costs.

Is Canada up for the challenge? We think it is. A world-class resource base, a geopolitically stable reputation, a long history as an exporting nation, projects being led by major LNG players who hold equity positions in the underlying gas reserves, the learnings from past experiences with megaprojects (including the Canadian oilsands and those gained by the proponents in other jurisdictions), support for the industry from both the BC and Federal governments, and a culture of innovation all set the stage for Canada’s LNG projects to compete effectively on the global stage.

At EY, we’re focused on supporting entities from all spectrums of the LNG value chain from the project owners to the LNG buyers to the myriad of suppliers and contractors and the various other stakeholders in activities including the following:

  • The assessment of the viability of their projects (considering the various competitive factors)
  • Structuring the Canadian operations to accommodate the project complexity and fiscal regime
  • Sourcing opportunities to inorganically grow their exposure to the Canadian LNG opportunity
  • Creating world-class and innovative business operating models and supply chain processes
  • Supporting the deployment of world-class capital project management capabilities
  • Creating innovative labor models to address labor concerns
  • Helping develop high performing joint venture organizations from planning to operation

Asking the right questions is crucial to positioning the BC LNG opportunity for success. Answering those questions, however, isn’t as easy as it sounds. Companies, government and communities will have to work together to ensure BC is set up for success and that we all stand to benefit from our resource potential.