While the Canadian oil patch gets most of the press at home, it’s our gas fields that are exciting Asian investors.
North American gas prices have been sandbagged by the limited export capacity and the development of fracking technology, which is expected to bring vast quantities of gas to the limited domestic market.
Gas plays have languished under ever-dwindling prices for the commodity, but there is a massive price differential between North American quotes and those in Asia.
NYMEX quotes have averaged just $2.50 per million BTU, according to Bloomberg.com, while import prices for liquefied natural gas in Japan have hit $16.76 per million BTU.
Interest in gas producers will be piqued today, as Malaysia’s Petronas has revealed it is working on a $5 billion acquisition, according to a report on Bloomberg.com.