Stakeholder collaboration key to evolving BC's LNG opportunity
VANCOUVER, May 20, 2014 /CNW/ - Moving BC's LNG opportunity from promise to reality requires all industry proponents come together and address five key factors impacting competitiveness, says EY in a new report.
"There's no denying BC's potential in the global LNG market, but success for players won't come easily," says Barry Munro, EY's Canadian Oil and Gas Leader. "Investment will depend on whether LNG projects are competitive globally. Plentiful natural gas reserves alone will not support development."
Competing in the global LNG market finds that understanding where Canada stands on the global stage requires zeroing in on the factors that determine competitiveness:
1. Global competition
2. First Nations
3. Capital allocation
4. Fiscal policy
5. People, processes and costs
"Unanswered questions revolve around many of these factors — each with the power to attract or deter investment here in Canada," says Munro. "Working together with the various stakeholder groups to address these questions head on is the only way we stand to benefit from BC's LNG resource potential."
That means understanding how competition will impact supply, demand and pricing balances, creating a framework that's supported by First Nations, addressing complex capital allocation decisions, building a fair fiscal policy and developing world-class competencies around people, processes and costs.
EY is a Silver Sponsor of the International LNG in BC Conference. The conference brings together BC community and First Nations leaders, environmental leaders, elected officials and LNG proponents from across BC and around the world. Barry Munro will be participating in the panel discussion, "B.C.'s LNG Advantage – Fiscal and Regulatory Competitiveness" tomorrow, Wednesday, 21 May 2014.
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SOURCE: EY (Ernst & Young)