Imperial Oil Ltd. (IMO), the Canadian company that’s 70 percent-owned by Exxon Mobil Corp. (XOM:US), is considering exporting liquefied natural gas from Canada, said Chief Executive Officer Bruce March.
“When it comes to LNG, it’s about a lot of gas reserves in western Canada which makes it strategically possible,” he said in a briefing with journalists in Calgary. “There appears to be huge and expansive growth opportunities for gas in Asia.”
Imperial joins Encana Corp. (ECA) and other gas producers in looking for ways to tap Asian demand for the fuel with decades worth of supply in western Canada. Imperial is looking at different sites on the Pacific coast of Canada for an export terminal as part of an LNG export strategy, March said.
The amount the company would need to spend on construction and operation of an LNG export facility over the 40-year or longer period is “significant,” he said.
Imperial fell 0.1 percent to C$45.93 in Toronto. The stock has five buy, nine hold and two sell ratings from analysts.
To contact the reporter on this story: Jeremy van Loon in Calgary at email@example.com
To contact the editor responsible for this story: Susan Warren at firstname.lastname@example.org