BC’s Minister of Natural Gas Development not worried about competition in global LNG market

Vancouver, BC, Canada / (CKNW AM) AM980

BC’s Minister of Natural Resources remains optimistic about the province’s LNG potential despite criticism over the delay of its tax regime, and a recent mega natural gas deal between China and Russia.

Speaking to reporters at a government-sponsored international LNG conference, Rich Coleman says there is no disagreement in regards to the tax rate.

“It’s not really anything in dispute, it’s about how we’re going to do levers, so how are we going to handle offsets relative to reducing green house gases on a certain level of GHG’s we’ll accept for clean. It’s things like how are we going to deal with our infrastructure royalty program to help them, to make sure they can build the roads and bridges and access to the field. All of those pieces are very important to the total package.”

He adds “I’m quite comfortable with the competitive side of this thing. And you know what, if you look at the growth potential in natural gas into Asia, there is room for all of us.”

Coleman says competition is healthy.

The value of the contract, signed between Russia and China amid growing isolation of Russia by traditional customers in the West , is pegged at $400 billion and covers a 30-year period.

The Russian gas, expected to flow to China by pipeline as early as 2018, would represent about a quarter of China’s current annual gas consumption.

Comments

  1. Coleman says competition is healthy .In BC anything new, business is not greeted with open arms if it competes with the established businesses.They call on their political friends to squash competition or make it harder to become established in BC.As for Colman or any Liberal they run a campaign on LNG and if its a go we will be held for the losses! I told you so! The BC liberals pipedreams. Use the LNG for our cars (lower carbon footprint) and establish a home grown business instead of making us pay for the high cost of LNG (as with Austrailia LNG projects) with high Natural gas pricing along with outrages hydro costs,looks like the BC Liberals are going to win the election in 2017, with the windfall of an election promise! Sure they will….not!!!

    • Personally I could do without this party’s bullying. Speaking of transparency in government? I’ve yet to see it. Policies created on restaurant napkins without public input? Not my idea of democracy at work.

      …and speaking Rich Coleman. He and Bill Bennett should go on tour together.

  2. As usual, we are getting sucked right down the pipe. If many countries have an excess of LNG, the price will be in the toilet, so the Chinese will win, win, win. And let’s not forget, the Chinese economy isn’t all that rosey, neither is the States, so this simple analysis tells me, usage will be down.
    And then there is something I’ve never heard mentioned,,,, doesn’t China have it,s own natural gas? Look at a globe, they should have. Maybe we should ask Christy, she’s been there enough! Rest assured, the Chinese will force the price below the cost of production.

    • Eb . . . you concerned about a clean planet I bet. Do you think that IF the Chinese had their own Natural Gas they would be importing Coal today to supply their Power Generators? They build one or two a week, by the way.

      Do you think that if we and others sell China Clean Burning Natural Gas to replace their numerous coal fired generators that the air will get Cleaner in China?

      I am always amazed at the lack of “Critical Thought” by many of the commentators here . . . have you forgotten what our options were last May? And if nothing changes in the next four years . . . we will have the same options next time . . . not a difficult choice for the thinking class.

    • At least these idiots have some what of a plan, unlike the NO ndp
      Is the governments role in this business not just approval and tax regime?
      And private industry building pipelines , lng plants etc. it’s their money and I’m sure they’ll invest it where it makes them the most money. They’ll decide if their is a glut on the market
      Because they are the brightest and the best, and that’s what pays for services in BC and canada

  3. Let’s see retired police officer thinks he’s an energy chieftain, I guess, by virtue of his appointment to the role by a former talk show host. The real energy chieftains of the world are schooling these twits, and we’re funding this whole charade. Paid-in tariffs, higher natgas prices, carbon taxes, higher hydro rates, a proposed dam we don’t need, apprenticeship program, public pork galore. This is the dumbest province in the country, and I was born here.

  4. The announcement of the Russia-China agreement was unfortunately purposefully timed to fire a shot across the front of Christy Clark’s Debt-Free bus (pardon the metaphor).

    It would be interesting to compare Christy Clark’s planned speech to the Natural Gas forum compared what she actually delivered-brave face and smile included. Had the Russia-China deal not been announced, it would not have been a surprise if Christy had planned to roll-out her Debt-Free bus onto the VCC floor. Too bad, Putin rained on her parade.

    The not-so-surprising revelation that the competition, including pricing, in the NG or LNG market is alive and well was obviuos to anyone who was paying paying attention to shale-gas technology and energy markets.

    However, that does not mean that British Columbia will be completely shut out of the LNG market because Asia will buy gas from many countries-rather than put all it’s eggs in one basket.

    Of course, we need to exploit our comparative advantage of abundant resources to pay for needed government services such as helathcare ,education, etc. But BC will need to be more realistic when it promotes its vast shale-gas resources and a desirable LNG industry.

    Do we really need to develop our LNG industry at a pace that will eliminate the provincial debt within a couple of decades-if ever? No government, no private corporation or even the most well-heeled individual could finance long-lasting capital investments out of current-cash flow-Warren Buffet or Bill Gates (possibly) excepted. Do we really believe a Debt-Free BC is realistic?

    Implicit in Christy Clark’s statement that the Federal, Provincial and Municipal governments are in this together is the sense that all levels of government are expected to lower their applicable taxes to make even one LNG terminal decision a reality. Provincially, does this mean reducing the earlier tax rates seemingly rejected by the industry, lower municipal taxes, exemption from carbon tax for NG-consuming liquification compressors and lower well-site royalties? And what kind of subsidy will be offered tn LNG terminals in the form of cheap electricity while our consumer rates are already going up over 25 percent?

    We, as taxpayers, should be concerned and alarmed that the provincial government has now been put over a barrel by Putin-China and may be now so desperate that it will give away the company store to move LNG forward in this province.

    The LNG industry, private or state-owned are able to and will take their investment dollars elsewhere to seek reliable sources at a higher return. They owe no allegiance to a political promise of a Debt-Free BC.

    IMO.

  5. So. If the minister of his own natural gas and doughnuts is not worried, how about him and snookums put up ALL THEIR ASSETS. If the amount of money that him and snookums says we are going to get does not come to 25% of that dream then they loose everything, gold plated pension included. If on the other hand, it comes in like snookums says then we should double what we pay them. And their pensions also.
    But don’t worry, snookums and the minister of his own natural gas and doughnuts wouldn’t dare take that one on.
    I sure hope the deep fried pets that snookums eats when she goes on taxpayer junkets for absolutely no reason taste good!!!

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