Hon. Jim Prentice, Vice Chairman of CIBC, discusses key issues to be
addressed for the success of Canada and British Columbia in the
Liquefied Natural Gas market
VANCOUVER, Feb. 25, 2013 /CNW/ - CIBC (CM: TSX) (CM: NYSE) - Canada is well positioned to develop a strong
Liquefied Natural Gas (LNG) market that will create jobs; an
export-focused competitive energy industry; and long-term economic
advantage for British Columbia and Canada. But there are challenges to
overcome to be successful, said the Hon. Jim Prentice, Senior Executive
Vice-President and Vice Chairman of CIBC.
Speaking at the "Fuelling the Future: Global Opportunities for LNG in
BC" conference in Vancouver, Mr. Prentice told the audience that there
is momentum in the right direction for success in the LNG sector.
"Everything is happening. Progress is being made on essential regulatory
issues. Pipeline routes in from the gas fields are taking shape.
Competition is mounting. Opportunity is emerging," said Mr. Prentice.
The good news is that Canada has a number of advantages including
geography and one of the shortest supply routes to the Asian market
along with a substantial resource base, supportive governments at the
provincial and federal level, and an open-for business environment, Mr.
Prentice told the audience.
But similar to the oil industry, there is a need to tap into new markets
because gas production has declined significantly over the last several
years and Canada has been dependent on traditional markets.
"We've entered a critical period. We face the imperative to match up
Canada's resources with the needs of the Asian marketplace. We must
access new and growing markets if we want to reinvigorate this
important industry," he added.
To guarantee success for Canada in the LNG market Mr. Prentice outlined
number of issues that must be addressed.
A royalty regime must be defined - and defined in such a way that it
promotes the establishment of an LNG industry in Canada and helps
ensure its long-term survival and success.
Canada faces a skilled labour shortage that could put development at
risk, and action is needed to ensure those skills exist.
The federal government needs to adopt a proactive role on coastal waters
Decisions must be made on how LNG facilities in B.C. are to be powered.
There is a need to better understand and move to address the competitive
challenge that may be posed by the United States.
"Let's be clear, getting into liquefied natural gas represents a big
financial bet," said Mr. Prentice. "The stakes are high and the
challenges are formidable. This is no slam dunk. We need to be
confident and aggressive - but we must also ensure that we resolve and
bring across the finish line a number of key outstanding issues."
CIBC is a leading Canadian-based global financial institution. Through
our Retail and Business Banking, Wealth Management and Wholesale
Banking businesses, CIBC provides a full range of financial products
and services to 11 million individual, small business, commercial,
corporate and institutional clients in Canada and around the world. You
can find other news releases and information about CIBC in our Press
Centre on our corporate website at www.cibc.com.
A PDF of Mr. Prentice's speech is available at: http://files.newswire.ca/256/Jim_Prentice_Speech.pdf
For further information:
Sean Hamilton, (416) 304-8456 or firstname.lastname@example.org