The BC government is denying reports overseas that energy giant Petronas may be putting its LNG plans for this province on hold.
An article from a Malaysian news outlet claims the state-owned company would delay plans to invest in liquefied natural gas here until as late as 2024. The story also blames a downfall in oil and gas prices.
But Minister in charge Rich Coleman says Petronas and four other backers are awaiting federal environmental approval after the election on Oct. 19.
“Those five companies met about a week ago in Vancouver, I met with their senior people last Thursday,” he said. “The consortium that is the Pacific NorthWest LNG project have given their final investment decision to the project pending a Canadian environmental assessment.”
Last summer, officials with the Petronas-backed company, Pacific NorthWest LNG, said federal environmental approval would be their last hurdle.
Likely to fail?
Earlier this week, now-retired bank economist with HSBC Bank of Canada, David Bond, wrote an opinion piece in the Vancouver Sun titled “LNG Dream will fail”.
In short, he says we’ve missed the boat on the LNG cash cow, and our clean air policy has been sacrificed for LNG.
CKNW’s Simi Sara caught up with him to talk more about this. According to Bond, our LNG projects are on life-support.
“By the time they actually get finished, if they do, the market will already be saturated in Asia. So there’s a question of if there will even be a market for the product.”
Moreover, he says the the price of natural gas is not going to rise that much, and the cost entailed in getting the natural gas out of ground and to market will make it less lucrative.
“It means that the amount that will actually go to the person who drilled the hole and got the gas will be pretty low, and maybe not worth doing.”
Listen to the full interview with David Bond here: