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October 27, 2017 10:00 pm

LNG – Another Project Stalled

Wednesday, July 13, 2016 @ 5:59 AM

Prince George, B.C.-  Minister of Natural Gas Development in B.C., Rich Coleman isn’t giving up on the LNG dream.

News  this week was that LNG Canada,  is putting off making a final investment decision on its proposed Kitimat  operation until  after the  end of this year.

Minister Coleman says the   “global downturn in the energy marketplace has created economic challenges for the natural gas sector” but adds “The provincial government remains optimistic about the future.  Our Government is focused on building a viable globally competitive industry.”

Indeed,  the head of LNG Canada ,  Andy Calitz , says  the project “remains a promising opportunity. and has offered praise for the work  and support of the BC Government,  First Nations and community of Kitimat. “We could not have advanced the project thus far without it. I can’t say enough about how valuable this support has been and how important it will be as we look at a range of options to move the project forward towards a positive FID by the Joint Venture participant.”

There is no word on when LNG Canada will make that final decision,  Calitz says  LNG Canada ( a partnership of Shell, PetroChina, Mitsubishi and Kogas)  “will continue key site preparation  activities.”

It was just  two months ago that LNG Canada  announced it was starting engineering  and planning work for its workforce accommodation centre ‘Cedar Valley Lodge”.   The  workforce was expected to peak at 4,500 during construction of the  liquefaction and export facility  in Kitimat.

Minister Coleman  says LNG Canada’s  statement that  the project  remains a “promising opportunity” is encouraging “we are encouraged to know they are still very much interested in shipping natural gas from British Columbia,  the work to make that happen continues.”


Leave to Christy and the Libs to put a positive spin on a big negative. Kind of leaves a hole in Christy’s 2017 re-election propaganda.

    Oh, but it WILL happen… they keep telling us so…. anytime now…. waiting…. waiting…. markets are flooded, prices are down…. but it is coming… Maybe after the election…. YA, that is when it will go ahead.. ya..ya.

Just shows how little faith the oil companies have in the BC and Alberta Governments, meanwhile Saskatchewan is reaping the benefits.

    Seems to me that SK doesn’t hove a seaport.

      bright boy retired, but they still have a growing economy. Must be from public sector growth. Back to bed now.

Good riddance. We don’t need to be supplying any sort of energy products to the Chicoms. We (as in Western governments and corps) have made them enough of a dangerous threat in the South China Sea and Asian region as it is.

    Stay out of Walmart then.

      I don’t shop at Wal-Mart.

Cheniere Energy began shipping LNG from the first of two major export terminals on the U.S. Gulf Coast.

According to the Wall Street Journal.

**The world’s appetite for North American LNG will be limited to about 6.5 billion cubic feet a day in the next eight years** the newspaper reported, citing analyses by the U.S. department of energy and Canada’s own CIBC bank.

**Cheniere has regulatory approval for nearly all of that volume, 6.3 billion cubic feet, from a pair of export terminals. That suggests trouble for dozens of other LNG projects, from Maryland to Oregon**

It also suggest potential trouble for projects on the Canadian side of the border, because the Americans–thanks to Cheniere’s first terminal in Louisiana and the second one under construction in Texas–have got the product to market ahead of us.

So lots of problems in the LNG industry, and more to come. I would not be betting a lot of money on LNG in BC anytime soon.

    That is the reality. Nothing to do with B.C. political spins, re-election propaganda, lack of faith and stuff like that. The US cornered the overseas markets ahead of us. Thanks for the info!

All our eggs in one basket…only problem is the basket has a huge gapping hole in it…..

The Liberal party are dreamers. Christy has a dream…but its called a pipe dream.

    That’s idiotic. During the last provincial election the price of oil was $110 US a barrel – in the first quarter of 2016 the price of oil was below $30 US a barrel.

    Natural gas prices are indexed to the price of oil so NG prices are in the toilet at the moment. How in the world could the ‘current government’ have anticipated what no-one else on the planet saw coming (the cratering of world oil prices because of Saudi Arabia d*ck-swinging).

    And you guys would all oppose LNG projects anyway, regardless of their economic viability. Just look at all the court cases facing every LNG project conceived for this province. You don’t seem to understand that replacing thermal coal in Asia with considerably cleaner burning natural gas is good for the planet. Duh.

      How can VOR’s post get thumbs down? It’s bang on truth.

      The same way rhat I just down voted yours for demonstration purposes.

All too often Canada suffers from the “you snooze, you lose” syndrome!

We study, study, study things to death! We capitulate to every bleeding heart, every anti-this or anti-that organization, and every single First Nation individually instead of once with the entire group of them!

It’s a wonder that anything at all gets done in this country?

While we dither and hum and hah over everything, other’s take advantage of our delays and of course they in the end prosper while we keep suckling the hind teat!

One of the biggest delays regarding LDG development is the ongoing protests over fracking and groundwater. A national study released on Monday once again disputes the anti-fracking groups claims. I find this line especially telling:

“Even studies that were financially supported by environmentalists found fracking has no effect on water quality.”

So, we continue to languish with a sagging economy and the subsequent decline in our tax base! Hope the bleeding hearts are happy with reduced services, services that a healthy economy and a sound tax base are able to provide!

ht tp://boereport.com/2016/07/12/federal-study-blows-up-green-claim-that-fracking-poisons-water/

    …and speaking of the subsequent decline in our tax base and reduced services, Justin has now cut Alberta health funding by $22 Million!

    Alberta, a province that definitely has some economic issues right now and in spite of those issue, a province that still continues to send Billions in transfer payments east to Ottawa, now faces Federal Cuts to it’s provincial health research funding.

    “Alberta will shed some of its top medical scientists and slash opportunities for young people training to be researchers, thanks to a $22-million cut to provincial health research funding.

    The chop in provincial funding comes at a time the province is supposedly committed to investing in innovation and diversifying the economy, say flummoxed university leaders.”

    ht tp://www.edmontonsun.com/2016/07/10/government-cuts-alberta-innovates-health-research-funding-by-22-million

    I’m sure that Albertan’s are thinking “Thanks Justin, for nothing!”

      I am sure Albertans are like the rest of the country in wanting wait lines reduced.. Cutting 22 million from the research costs only matters once we find out where this money is going to. What was the research budget before this cut?

      Oh and it was the Province who cut the funding..not the federal government…nice try though 8)

      Oops, sorry P Val! I take “ownership” of my mistake! The first post that I read of this story stated that the Feds made the cut!

      Guess this is another thing that Albertans should be thanking Rachel for! ;-)

      Regardless, the cuts fall in line with my earlier statement that a sagging economy and declining tax base will result in reduced services!

      According to the story, the cuts represent a quarter of the annual funding!

      You should be happy Hart Guy, The Alberta NDP is taking a page right out of the Conservative playbook by slashing funding. Cutting government expenditures is all you Con parrots ever beak off about. The Alberta NDP does exactly that and you are complaining about it. I guess cutting government spending is only a good thing when you Cons are doing it,

      Welll a lot of the Alberterns moved to BC..

Another Kitimat Pipe dream (pun intended ) down the grain…

We can make all the excuses we want but at the end of the day, we weren’t really in the LNG game. It was first and foremost an election promise based on nothing more than political hyperbole.

Site C is another project that has no merit, but is needed to try and get Christie some credibility, and re elected.

Funny how the Americans, and others around the world seem to be able to get these projects going, but as Hart Guy says, we sit on out butts and moan and groan.

The real problem in this Province is that the Liberals and NDP both have no real skills when it comes to running a Province. At best they look after their own self interests and to hell with anyone else.

We on the other hand continually whine and wring our hands, and say if the NDP get elected the economy will go into the tank. Completely overlooking the 20,000 plus jobs that we lost since the Liberals came to power. Then we say we must re elect the Liberals or God forbid we will get the NDP, completely overlooking the fact that the Liberals are a spent force as a Government and in fact should be thrown out because of their incompetence.

So I for one will not be voting for either one of these **loser** parties.
Its time for real change in BC and I don’t particularly care whether its the Greens or the so called **new** Conservative party. Anything is better than the status quo.

    I agree. We have a current choice between a monopoly capitalist party and a socialist party, but what we don’t have is a free enterprise party representing the middle class and small business opportunity. We have all parties that claim this stake, but none that actually walk the talk. It’s a disgrace and a pox on our political system that the majority don’t have a place to park our votes.

    We are not sitting on are butts Pal. Look at the legal road blocks the First Nations and Enviro nazis have thrown up. Look at the raodblocks Quebec and Ontario are trying to put up over energy East. Look at the changes Zoolander has brought in under this new made up concept of social liscence. How about Obama unilateraly cancelling Keystone. These companies could have had these projects up and running by now if not for these backassed progessives and our sympathetic courts blocking any attempt to move forward. That’s the facts Pal. If you would really vote Green on one hand or Conservative on the other, and think you will get a better government, you need help.

Palopu you are wrong. Look at all the foreign funded NGO’s, special interest groups, native groups that are against everything. That is a big part of the holdup.

NGO’s like Tides have no morals where their funding comes from such as from those that would be in competition for natural gas and oil.

As for site C, all generation in service today was also not needed.

    Seamut I’m surprised that you finaly see the light.

      What are you talking about retired, that is what I have always stated.

    Why limit your wrath to the NGo’s and special interest groups? I would bet a vast majority of the funding in our political system is foreign funded as well.

It seems rather than put the blame for the LNG fiasco where it belongs, right in the lap of Christy Clark, some people want to blame the special interest groups.

Fact of the matter is the Liberals created the LNG myth to get elected in the last election and they used all sorts of information in regards to the revenue that would be generated, the number of jobs that would be created, the time line etc; etc;. None of which was true.

I am not going to go into a lot of detail to establish that the Liberals were fully aware that their claims were far removed from reality, however if you care to do some investigating as was done by some newspapers through freedom of information, etc;, you would find out that Christy Clarks numbers were disputed by her own civil service;.

One example is the fact that we cannot make any money on LNG unless the price of oil is around $80 to $90 dollars a barrel.

Furthermore the number of jobs that would be created LNG are way out of whack, as is the amount of revenue the Government would receive.

Make no mistake. This was an election ploy, and now going into the next election she will blame others for the failure of this project, and she will try to change the channel from LNG and Site C to Real Estate Boards and the high price of housing.

Time for people to do some research and then face the facts.

Your losing it palpou. You have always crapped on the LNG theme and now your right because energy prices have collapsed. Hero points for being lucky. The fact is that BC has massive natural gas deposits and were growing until prices shit the bed. No rational person can set that blame on any government. Don’t gloat Pal, you will ultimately eat it.

In some ways you can make a lot of sense, why the need to drift into the stupid zone?

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