Q: There is a lot of bullishness on LNG the last year or more. I read recently about China, and a glut of LNG developing in the international markets. I don't see anything with how it may effect Canadian LNG markets. Could you comment on this and are you still bullish on LNG going forward. Do you see Tou.ca and Arc.ca as buys and what effects could the Global markets have on them. Thanks so much.
5i Research Answer:
Canada has only one LNG facilty in development, but more are planned. There will still be a market, though as usual it will depend on global demand. But because of pipeline capacity restraints, more LNG accessibility will still be a positive for Canadian natural gas producers. Because we are still limited in capacity, we do not think global prices will impact Canadian producers so much. North America demand is still going to drive gas prices more. We would still see TOU and ARX as buys for the sector.