Expect financial woes for LNG projects in Atlantic Canada, says EY

ST. JOHN’S—The proposed liquefied natural gas (LNG) projects in Atlantic Canada are expected to face economic challenges due to quickly evolving markets for LNG cargoes, high capital requirements, and the sheer volume of projects competing for investment in North America, says Ernst & Young (EY) in the latest edition of its East Coast Offshore report.

According to the quarterly report, investing in new technology may benefit the LNG projects in the long run, but those projects must be balanced with near-term costs and any technology risks. Tax incentives such as SR&ED should be carefully considered and accessed if possible to reduce the financial costs of leveraging the latest technologies.

The quarterly report highlights emerging legislative, regulatory and competitive issues affecting Atlantic Canada’s oil and gas industry. Get a PDF of the report here.

EY is a global assurance, tax, transaction and advisory services provider.