Al Hudec presented at the ABA Section of International Law Conference in Tokyo, Japan on October 20,2016. His presentation focused on the prospects for successful development of a Canadian LNG export market focused on Asian markets, including an assessment of Canada’s competitive strengths and weaknesses relative to competing projects in the US and Australia and a discussion of interesting legal issues.
Canada’s competitive strengths included proximity to market (9-10 day shopping times relative to 20+ from the US Gulf coast, an abundant low cost resource base, climatic advantages (efficiencies of liquefaction in a colder climate) and a stable fiscal/regulatory regime. Challenges included the capital cost of greenfield facilities (relative to US brown fields), the need for pipeline infrastructure and the complexities of the Aboriginal engagement process.
Interesting legal issues raised included compliance of the Canadian regulatory process for large resource projects and the Aboriginal engagement process with the Equator principles; project financing structure alternatives; the Canadian regulatory/fiscal regime governing LNG liquefaction; and governmental measures put in place by the British Columbia government to ensure proponents of the stability of those regimes.
To view the full presentation click here.