David Keane, President of the BC LNG Alliance, has detailed the challenges and the opportunities facing British Columbia’s LNG industry in a keynote address to the Vancouver Board of Trade.
“The new LNG industry in British Columbia is not a forgone conclusion,” said Keane. “If LNG is to be viable in this province, our industry, along with each level of government, will have to make some difficult decisions in order to cross the finish line."
The projects proposed by the Alliance's members could constitute the largest investment ever seen in British Columbia. Together the Alliance members' six projects represent a total potential investment in the tens of billions of dollars, just for the liquefaction plants alone. Investments in pipelines and upstream production facilities would add billions more to the total.
On average, up to 4,000 new jobs could be created to construct each large-scale LNG plant, while thousands of new and permanent jobs would be required to operate the plants and support the industry. When operational, the plants could provide new revenues to all levels of government that may well run into the billions every year.
“We need to find the right balance that enables British Columbians to get fair value for their resource, while ensuring our industry can compete in world markets over the long term,” said Keane. "There are challenges, but they are not insurmountable."
“It’s urgent we get this right as the window of opportunity to sell BC LNG into the global market is closing quickly,” said Keane. “After 60 years of natural gas exports to the U.S., there is declining demand for our product there.”
He noted that companies preparing to make a Final Investment Decision do so in the context of the global LNG market and require clarity, certainty and a competitive fiscal environment that recognizes the sizeable technical and financial challenges of very large and complex projects with significant risk.
"BC has a world class resource, robust environmental protection, incredibly talented people, great education and health care systems and a stable political environment.” said Keane. “Our members want to invest in British Columbia."
The role of the Alliance is to foster the growth of a safe, environmentally and socially responsible LNG industry in BC that is globally competitive. Members of the Alliance include: Kitimat LNG (Chevron Canada and Apache Canada); LNG Canada (Shell Canada Energy, PetroChina, KOGAS and Mitsubishi Corporation); Pacific NorthWest LNG (PETRONAS, JAPEX, Indian Oil Corporation, Sinopec and PetroleumBRUNEI); Prince Rupert LNG (BG Canada); Triton LNG (AltaGas and Idemitsu Canada) and Woodfibre LNG (Pacific Oil and Gas).