Mayor of Prince Rupert doesn’t want to lose LNG race

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Mayor of Prince Rupert doesn't want to lose LNG race

As the International LNG in B.C. Conference wraps up tomorrow (May 23), the Mayor of Prince Rupert is hoping BC doesn’t lose the Liquefied Natural Gas race.

Jack Mussallem says proponents are eagerly awaiting the province’s tax regime.

“Everybody is hoping that these developments, if they’re going to go ahead, if the business case can be substantiated, that it’s done in a seamless manner. There are market conditions at play, there are other companies in the world that are also interested in selling Liquefied Natural Gas to Asia. There is a window of opportunity here, this is a great amount of awareness, and I don’t think anybody wants to miss that.”

He adds “I’m aware that the proponents are working on their business case, and certainly knowing the tax position of the province of British Columbia is critical, in terms of a business case.”

Petronas has proposed to build a multi-billion dollar LNG export facility near Prince Rupert.

The province’s proposed tax regime would impose a 7% tax rate once companies have recovered their capital costs.

A final decision is expected in November.


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  1. A 7 % tax rate once companies have recovered their capital costs , So these turkeys won’t pay taxes untill they have payed off their costs , construction and what not , so the trouth is we won’t make any money on this deal , it will be just like north west coal . It will take years to pay it back . and mean while we are going stuck with this farce , They get the gas and tax payers get the shaft . Who realy makes the money on BC Gas , It won’t be the province , but the middle man that buys it from us than sells it in China at what mark up ? This is just another way of selling off the country to the hightest bidder , one piece at a time .
    Why not keep the gas for our selves , you know the Canadians could use it , better than them .
    And instead of selling our resorses to china and receiveing goods , back ,
    We should be produceing our own stuff ,
    It’s time to start buying Canadian , instead the cheep crap from China .

  2. Mayor Jack Mussallem is not the only one who should be worrying that the trillion dollar LNG pipe dream will not become a reality.

    The question is: “What is your Plan B to raise the necessary government revenue to pay for healthcare, education, LM transit children in need and single moms whose child support payments are being clawed back?”

    Which of the following should be increased? MSP, government fees, ICBC premiums, Hydro rates, carbon taxes, income taxes-if LNG does not fulfill its promise of a debt-free BC?

    I want BC to have a sustainable LNG industry but am worried that it has been oversold.

  3. This was never a race from the get go. It was a promise the moon hail Mary that worked. Now to parlay that into successive campaigns, Premier Boo Boo must give anything, including our future to those that demand free stuff forever as payback to build this pipedream. 2017. She said in production by 2017, with so much extra money we won’t be able to spend it all. 2017. See how that coincides with the next election cycle and maybe some will be awake this time.

  4. Mike:

    I worry too that the province will give away the “company store:” to partially fulfill its election promise. The LNG will receive all sorts of iducements, tax breaks, exemptions and subsidies not available to existing businesses and consumers.

    The Debt-Free BC plan is bogus.

    Coleman on CKNW literally scoffed at the fact Russian natural will have to piped all the way to China. I’ll bet that if there was a land bridge to China, the BC NG industry would also build a pipeline. Why would anyone build expensive LNG trains when it could be shipped cheaper in its natural form-a gas?

    He also says China has assured him that the Russia-China deal is years away.

    Just as BC LNG proponents have signed confidentiality agreements with the province to protect their data from the competition, I’m sure that Russia and China signed confidentiality agrrements as well. So I won’t believe Coleman at all. So why would China even keep Coleman in the loop other than to force BC LNG prices down.

    Impicit in Coleman’s comments is the notion that because China has the infrastructure to handle LNG, it cannot handle NG efficiently. Someone should explain to him that before LNG can be distributed and used, it nmust be converted back to NG-in pipelines.

    We now need to scale down our LNG revenue expectations as Coleman now acknowledges that the price may drop down to $13 from the $18 touted by Christy. Based on the current published tax regime, no income tas revenue will accrue from LNG for many more years after start-up as it will take longer for the industry to recapture their capital costs.

    It would be interesting to hear what perspective our labour expert (Dwight) and others have to offer on this subject.

  5. Those who oppose all petroleum and gas exploration and development have been so happy with the announcement of the Russian-Chinese “deal”. This is a theoretical deal, at best. It has been negotiated over a ten year period, and just coincidentally it has been reached just in time for the St Petersburg Economic forum-a “showcase” for Mr. Putin as this traditionally has seen plenty of western business and government officials in attendance. Not so this year. The Russian economy is tanking, interest rates are rising, and the sanctions, and threats of further sanctions are driving western investment and borrowing away.

    The infrastructure to deliver the Russian gas to China does not exist. It will cost, minimum, $50 billion US to do this, and this is at Russia’s expense, not China. The Chinese are astute, and know that Russia may not be a reliable supplier long term. Gas from places like BC are a better source, they know and so should we.

    The private sector will be responsible for much of the investment in BCLNG-I have confidence in their assessment of the business and financial risks than I do in the judgements of “progressive” politicians, greens, university professors, and the media. Government is the problem, it is not the solution-to anything.

    • John, you are correct that a Russia-China pipeline which doesn’t yet exist will cost over $55 billion.

      In that sense, the required BC infrastructure, including NG pipelines, LNG terminals (liquification trains) not to mention FEED, doesn’t exist either. And no contract between any Asian country and a LNG proponent has been signed yet.

      It’ s fine to put on a brave face but the taxpayer has to be really concerned that the provincial government will give away our resource to try and catch up to the Russians.

      • “It’ s fine to put on a brave face but the taxpayer has to be really concerned that the provincial government will give away our resource to try and catch up to the Russians.”

        GIVE AWAY ? ? ? That is just a completely nutty comment . . .

        The Province, The Federal Govt get paid royalties by the companies that Drill the wells and find the gas, the private sector build the pipelines and the CNG plants. And YOU claim they are giving it away?
        Then there’s the thousands of jobs created, ALL tax-paying jobs I would suggest . . .

        Did you ever have a real job Site . . . or did you work for the Govt?

  6. Ask the Poles and Ukrainians about the RELIABILITY of Russian Gas . . . laughable.

    But our far-left Kremlin supporting gang is ready to shut down the province because of one pipeline. There are 3 Billion people in the Pacific Rim countries, many have no access to Clean, Low Emissions Natural Gas. The more CNG available the lower the emissions from China and India . . . the two countries on the planet that emit the most pollution.

    And once more for the confused leftists . . . every Gj of Natural Gas that comes out of the ground pay Royalties to the Federal and Provincial Govts. The investments are from the Private Sector. The thousands of jobs are also paying Taxes, as are the Companies that employ same.

    The anties once again demonstrate a Complete Lack of Understanding of how this Industry Works . . .

    • Good commentary.
      The great green wing nuts miss the point that employment in the northern communities is a very good thing locally and for the entire province. It’s all part of maintaining a healthy economy. Governments don’t create jobs but they certainly can get in the way as does every special interest group. It’s time for some serious repercussions for groups that spread misinformation.

      • Kelly….are you really serious that you buy into a pitch based solely on emotion? Dale has proven that he is incapable of offering an informed and rational perspective.

        The Russia-China deal has blown a big hole in Christy Clark’s dream and promise of a debt-free BC. Experts are predicting that the price of NG delivered to Asia will only be approximately 2/3 of what Christy based her dreams on ($13 vs $18).

        But When it comes to NG, Russia has 20 times greater NG resources than BC. China has barely scratched the surface as far as shale gas exploration is concerned. BC isn’t the only jurisdiction blessed with shale formations. Energy experts estimate that China may have the largest shale gas reserves in the world.

        When China acquires the technical expertise to frack shale ( thanks to Christy Clark’s generous offer to share the technology), there will be a glut of NG in Asia like there is in North America and prices will drop rapidly.

        So contrary to your views, the uncertainty of global demand, supply and most of all pricing, BC tax regime, incentives, inducements and subsidies are holding up investment decisions-not your environmental boogymen.

        I’m afraid that you will respond emotionally and will continue to do so unless you acquire a better grasp of technology and economics and energy. When it comes to environmental boogymen, they are non starters in this debate.

        LNG development will be based on economics not on our political bent. But, if it will not be profitable to operate in BC, these Multi nationals will go where it is.

        • Another indepth clueless comment by the Site . . .

          “When China acquires the technical expertise to frack shale ( thanks to Christy Clark’s generous offer to share the technology), there will be a glut of NG in Asia like there is in North America and prices will drop rapidly.”

          Really ? ? ? You mean they could not just call Total, BP or Exon Mobile tomorrow and have them do seismic and geological research? You are beyond uninformed.

          Do the Chinese import coal because they have no technology?
          They import coal because they have little or none . . .

          Are you aware that there are numerous other countries around the Pacific Rim? They also purchase CNG . . . and the market will only GROW in the future.

  7. Site . . . the emo leftist who writes volumes of uninformed dribble . . .

    Whether it be the environment, economy, unions or taxation . . . you demonstrate you don’t get it . . . . socialism/progressivism is failing all over the world . . . and these are your fellow travellers . . . always a chuckle Site !

    ps: Christie is NOT drilling for gas, Christie, like you, does not have the technology . . . the Province will collect royalties, tax dollars and other revenues as business is conducted within their borders. Whether it be gas, oil, timber or Tim Bits being produced, consumed and exported from our ports . . . the folks in BC will benefit largely . . . that is the reality !