Canada warned of cost escalation for LNG projects

|By:, SA News Editor

Severe cost inflation could well show up on Canada’s west coast, industry participants say, should Chevron (CVX), Royal Dutch Shell (RDS.A, RDS.B) and Malaysia’s Petronas launch multibillion-dollar liquid natural gas construction programs at the same time.

The British Columbia government is counting on natural gas exports to provide it with billions of dollars over several decades, but new entrants are skeptical that B.C. can escape Australia’s fate, where a building frenzy saw costs for CVX’s Gorgon LNG plant blow past $50B.