VANCOUVER, Oct. 8, 2014 /CNW/ - David Keane, President of the BC LNG Alliance, today 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).
About the Alliance
The BC LNG Alliance is dedicated to fostering the growth of a safe, environmentally and socially responsible liquefied natural gas (LNG) industry in British Columbia that is globally competitive.
B.C.'s significant natural gas reserves and our proximity to Asian markets give our province a rare opportunity to grow a vibrant new industry while serving the growing demand for natural gas and a better quality of life in the Asia-Pacific.
The Alliance was launched officially on October 7 in Terrace, B.C., to demonstrate how vital northern British Columbia is to the industry.
- 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)
- Woodfibre LNG (Pacific Oil and Gas)
Working with our members, the Alliance aims to:
- Foster a globally competitive LNG export industry for the benefit of British Columbians and Canadians
- Work with government at all levels to ensure there are policies and programs in place that will enable the LNG industry to reach its full potential
- Ensure the industry is developed to the highest environmental and safety standards
- Engage with, listen to and address the concerns of First Nations, communities and stakeholders
- Provide the public with reliable information about our industry, operations, best practices and the challenges we face as a new industry
LNG Benefits for British Columbia and Canada
LNG holds the potential to create tens of thousands of new construction jobs and thousands of new permanent jobs for British Columbians for decades to come.
- For example, up to 4,000 new jobs could be created to construct most of the large-scale LNG plants, while thousands of new and permanent jobs would be required to operate the plants and support the industry
- 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
- When the plants are operational, they could provide new annual revenues that may well run into the billions of dollars to all levels of government through:
A Competitive Fiscal Framework is Required to Cross the Finish Line
- LNG projects are large undertakings that involve substantial capital investment
- LNG proponents sizing up their Final Investment Decisions do so in the context of not only what is happening in British Columbia, but what is happening globally
- Alliance members want to ensure that the overall cost structure they operate in is competitive with other jurisdictions
- B.C.'s LNG industry requires clarity, certainty and a competitive fiscal framework to be successful in a highly competitive global LNG industry
Image with caption: "David Keane, President, BC LNG Alliance (CNW Group/BC LNG Alliance)". Image available at: http://photos.newswire.ca/images/download/20141008_C1870_PHOTO_EN_6500.jpg
Image with caption: "The BC LNG Alliance was launched officially in Terrace on October 7, 2014 with an event that included representatives of First Nations, local governments and industry. (CNW Group/BC LNG Alliance)". Image available at: http://photos.newswire.ca/images/download/20141008_C1870_PHOTO_EN_6501.jpg
Image with caption: "BC LNG Alliance logo (CNW Group/BC LNG Alliance)". Image available at: http://photos.newswire.ca/images/download/20141008_C1870_PHOTO_EN_6502.jpg
SOURCE: BC LNG Alliance
For further information: Tamara Little, [email protected], 604.767.0207