Will B.C. Capitalize on LNG?
Prince George, B.C. – Will liquefied natural gas prove to be the big pay off the B.C. government is hoping for in the coming years?
Well one UNBC economist has his doubts, especially after Petronas decided to delay its investment decision on a $36 billion LNG project at Lelu Island last month.
“Petronas were probably the furthest along of the companies that were interested in building terminals or at least one of the leaders,” says Dr. Paul Bowles.
“So their decision to step back and put it on hold is quite serious for the prospects for LNG now.”
He says the plummeting cost of oil hasn’t helped.
“So what that means is that that source of energy is much more attractive to consumers to purchase now. It means that an alternative fuel source such as natural gas looks less attractive because its relative price is no longer so cheap.”
And despite the provincial governments move to create a low LNG tax regime Bowles says that’s actually just a small piece of the puzzle moving forward.
“Competitive tax rates of course at the margin will make a difference to investment but there’s much bigger issues out there.”
He says that includes the price of natural gas, the price of alternatives (such as oil), and longer term issues that are unresolved such as land title and environmental reviews.
“All those things play in. And the tax regime was only a small piece of that. I think the government was hoping it was a much bigger piece of the puzzle than it’s actually proven to be.”
Comments
Uh short answer. nO. Missed the boat. It sailed. By by.
Can you say election promise/throne speech?
Duh.
Sheople keep following the lemmings.
So lildigger it is easy to hindcast. Very little skill required.
But Clark promised us that LNG would get us out of debt, more money for healthcare, seniors, education,trades etc.
Guess she and the liberals will have millions of reasons why we are still in debt rather than millions of dollars to fulfill her promises
So, the next ‘great project’ is the Site c dam(n)!!!We shall see on that one too.
I hope the economy keeps going though–several younger generations in the ‘skilled trades’.
Site C is probably another LNG story.
Took a drive down through Delta yesterday and I couldn’t believe my eyes there are two high tension power lines like the ones you see up in Pineview (230-500KV) and south along #97 going into the good old USA. So who needs the power from Site C us or the Americans?
We do Retired, they are closing Burrard Thermal natural gas powered plant in 2016, they are adding a few extra generators at Mica Dam to make up the difference (nice thing about those hydroelectric dams, if you have the water you can increase generation…)
Those power lines have been there for decades, are used to import and export power depending on the market and grid operations. You know nothing of grid operations, it’s all a conspiracy I guess in your mind. Maybe you uncovered the conspiracy and all present power plants can be removed because we don’t need the power, it is all exported. Hey there are more in the kootneys, hey even into Alberta, even Alaska.
Hey heard Abby got two flakes of snow and it’s a disaster down there.
MAYBE I will declare price gouging just like the good ol yanks and not pay my bill either.
We dragged our heels. Why are we surprised the window is almost closed?
Yeah J.B. short term gain for long term????
Seammut you babble on to try to soud intelligent. I worked my entire life in the electrical trade I have forgotten more about grids then you will ever know. So give your head a shake and give us some info that’s worth reading.
Cheers
Should read “sound”
Actually you show that you have very little knowledge of grid operations or electrical generation in general.
Careful seamut the pedestal you’ve placed yourself on could turn you into a lighting rod. Ha,ha.
Like it or not maverick, the Province and the Country depends greatly on the extraction and trade of natural resources. This is not changing anytime soon. You and others can demand that we hoard it all to ourselves, but you offer no alternatives.
J.B, corporate as well as Government gouging has to stop period. Some CEO salaries set a 9 million a year. Pensions plans for politicians set at between $60,000 to $200,000 yearly and the worlds population 7.5 billion (sustainable) I think not.
What is your projected population growth for 2020? I think you know the answers your searching for.
Mav: “Pensions plans for politicians set at between $60,000 to $200,000 yearly and the worlds population 7.5 billion (sustainable) I think not. ”
I agree that public sector wages, benefits, and pensions are not sustainable. Currently they depend on such things as resource extraction and the thousands of related jobs in the field. You still offer no alternatives to resource development to keep the economy going.
I know people think that low cost oil is good for them (at the pumps), but this is actually really bad for the Country’s economy. Most just don’t realize it.
Maverick, Retired discount anything I have said adout grid operations. Don’t let your egos get in the way. Retired please give us an overview of grid operations and security. Don’t forget power system dynamics.
Ever notice that the entitled ones are always the short sighted ones.
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