Sunday, May 19, 2013

British Columbia`s LNG Facilities To Be Built In South Korea, Each One To Employ A Mere 250 Full-Time Workers(What Happened To Your Promise Of 75,000 Full-Time LNG Jobs Christy Clark?)

Isn`t this what our 2013 election was all about....Streets paved with gold, prosperity fund for the children, 100,000`s of jobs, BC Hydro, BC Ferries debt eliminated, Port Mann bridge tolls wiped out, British Columbia`s debt retired and sales tax removed..

Those were the promises Christy and the BC Liberals made to all voters, I like to dream too, powerball lottery wins, fountain of youth, finding new earth-like ready to inhabit planets we can shuttle off to..

It`s time the BC Government and or the energy companies give us the straight goods, me personally, I already have the answers, however the joe-stupid public does not, clues were released just weeks before our election, I attempted to inform the public about a glaring contradiction with what the BC Liberals were promising us and what one of the largest world energy giant players was actually telling us...

In Australia, $185 billion dollars has been spent developing an LNG industry, several facilities are coming on line in 2014 through 2016, many different companies with different size LNG plants ranging from standard to behemoth, no two plants are alike but they all have one thing in common, that being massive cost overruns, Chevron`s Gorgon plant ballooned from an estimated $20 billion dollar build cost to $60 billion dollars, the same story is being echoed throughout Australia..

Several reasons are being bandied around as to why all these projects are way over budget, logistics in accessing remote areas, high-priced labour, skilled tradesmen shortages, and they are all correct, there is also corporate manipulation at play, these capital projects can claw all the money back from the Australian Government itself, this too has driven up the price..

The BC Liberal party in their 2013 election platform promised 75,000 jobs after our BC LNG plants are in operation, 75,000 jobs to operate and run 5..6...7....8 LNG plants, the exact number is unknown, maybe there will be only 1 LNG plant that gets built...But even if you take the number 8, as in 8 LNG plants...Mathematics tell us that....If as the BC Liberals promised, 75,000 jobs after these plants are in operation, each plant must employ 10,000 persons, or if you like, 4 LNG plants in operation they must employ 20,000 persons...

I was already initially skeptical, and I`m not talking about temporary construction jobs, we are talking about the facilities get built, they are in operation, how many workers will they employ?..Because the BC Liberal 2013 election platform is quite specific... And I quote..

"LNG facilities are currently proposed by business groups that include some of the world`s biggest energy companies-Shell, Imperial, Chevron, British Gas, Petronas, SK & and ES of South Korea, Inpex and the Chinese National Offshore Oil Corporation, to name some of the major players, it`s no fantasy.
The projects mean 39,000 jobs to British Columbia during construction with another 75,000 full time jobs created once in operation. We can create 1 $trillion dollars in economic activity and create the BC Prosperity fund with $100 billion over 30 years.

An opportunity this good faces lots of global competition. Premier Christy Clark and Today`s BC Liberals have worked diligently to enable LNG as an economic generator for decades to come."

(BC Liberal platform at below link)


There is the smoking gun evidence, from the BC Liberal platform...39,000 construction jobs and 75,00 full-time jobs once in operation..

That whole number thing seems backwards from the git-go, normally there are more during construction jobs than the full time after everything is built job numbers....

Do you see those job numbers in the BC Liberal election platform...

"39,000 jobs to British Columbia during construction with another 75,000 full time jobs created once in operation"

How many LNG plants are being proposed, we have heard these Liberals say 4 LNG plants, 6 LNG plants, 8 LNG plants...

Well, there is an article tonight in the Vancouver Sun, the BG Group(British Gas) have announced they are going to the planning stage, then if that goes well they will apply for an environmental assessment, no they haven`t made any firm commitments, it`s still very early in the process, they mention something about, if everything goes well they will start assembly of their LNG plant in 2016..

But what is absolutely startling is the honesty in the article, honesty from a major world class energy company..

What British Gas has stated in the article is this...


"The BG Group has filed plans for a liquefied natural gas plant at Prince Rupert that would consume the equivalent to all of the province’s current production of natural gas and almost all the energy generated by BC Hydro’s proposed Site C dam to produce it."


Do you see that? This one LNG plant will consume all the present natural gas production in British Columbia, that`s not the scary part, what is stated in the article puts "Christy Clark and Today`s BC Liberal`s" jobs number to shame, this article makes a complete mockery of what the Liberals are stating in their 2013 election platform..


"BG intends to build a facility on Ridley Island capable of producing 21 million tonnes of LNG a year. Called Prince Rupert LNG, it would be built overseas in modules and shipped to Prince Rupert for assembly.

 Even so, the plant would create 3,500 jobs during construction,

 250 permanent direct jobs and another 250 spinoff jobs.

 BG says it is planning to build it in two phases, beginning in 2016.
The first phase — two seven-million-tonne-a-year processing units, or trains — is to be completed by 2021" 

Do you see that?....3500 temporary construction jobs, 250 full-time jobs with 250 full-time spinoff jobs...

Well well well, let`s take the 6 LNG export plants scenario,  first off, the plants are built in Asia, shipped here and assembled, that`s a problem, but the bigger problem is the job numbers..This British Gas project is a biggy, so big it will not only take all our present natural gas production it will also require all the power generated by the proposed $12 billion dollar public taxpayer project known as Site C Dam..


"The scope of the project is huge: All three trains would consume about 3.3 billion cubic feet of gas a day, which is the equivalent of B.C.’s current natural gas production. The plant will require 800 megawatts of energy to run refrigeration compressors and to run the facility. By comparison, the Site C dam would produce 900 megawatts"


 Let`s go with the 6 LNG export plants scenario...If we extrapolate the job numbers from this one super big LNG plant...

"the plant would create 3,500 jobs during construction,

 250 permanent direct jobs and another 250 spinoff jobs."

We are talking about 21,000 temporary construction jobs if all 6 LNG export plants were built at the same time with a total of 1500 full-time jobs and another 1500 hundred full-time spinoff jobs, that is if all 6 plants were built..Someone is zooming us British Columbians..

Let me remind you what is stated in the BC Liberal election platform on the subject of LNG..

" The projects mean 39,000 jobs to British Columbia during construction with another 75,000 full time jobs created once in operation. We can create 1 $trillion dollars in economic activity and create the BC Prosperity fund with $100 billion over 30 years."


So the BC Liberals have doubled the amount of construction jobs, however, where according to British Gas, a mere 250 full-time jobs plus another 250 full-time spinoff jobs will be created by this one super large LNG export plant....If you times that number by 6(as in 6 LNG export plants)...That totals 3000 full-time jobs while the BC Liberals are claiming in their 2013 election platform that these LNG plants will create..

"with another 75,000 full time jobs created once in operation"

Where are those jobs, who`s zooming who, yes there will be increased natural gas drilling but that process is..Drill a well and cap it, move on and repeat...I can assure you there will not be 10,000 natural gas drillers required for each LNG plant..

6 LNG export plants, 3000 full-time workers, to come up with a 75,000 full-time job number they would have you believe that each LNG plant needs 12,000 natural gas drillers, the numbers are absurd..

And there is another problem, we can`t build 6 Site C dams, that would cost $70 billion dollars, $70 billion taxpayer dollars, and so that means these LNG export plants would have to burn natural gas to produce electricity..And that would create this problem..


"The B.C. government anticipates this province’s abundant gas reserves will be sufficient to meet that demand and has forecast that natural gas production will increase to eight to nine billion cubic feet a day by 2020.
But questions remain about the amount of water required to produce that much gas. Further, the province does not have the hydro capacity nor the transmission line infrastructure to meet the industry’s massive appetite for power.
In its project description, BG states that it intends to burn natural gas to produce the 800 megawatts its facility will require. Natural gas is preferred over electric-powered refrigeration compressors because LNG plants require a highly reliable power source."

Art Sterritt said First Nations are concerned about the cumulative impacts of the plants that have been proposed so far. If the three plants for Kitimat go ahead along with BG’s Prince Rupert plant and a second Prince Rupert plant proposed by Petronas, the new industry would create four times the natural gas emissions now being produced in the entire province.
You are talking about four times the acid rain, the CO2 produced in all British Columbia from natural gas, being produced up here in the Northwest. That has got us spooked really bad.
“We don’t think British Columbians are going to buy that. We are certainly not buying it.”

 So let`s breakdown this fantasy LNG plan...First off the modules are built in Asia, we merely assemble, ...Second..There are temporary construction jobs but the likelihood is, no more than three LNG export plants will be built...9000 temporary constructions jobs, where do those workers go after that, we can`t build 100 plants, we haven`t got the gas, the water, or electricity..

The amount of full-time jobs created by these LNG plants is a drop in the proverbial bucket......3 LNG plants would create a total of about 1500 full-time jobs, that`s counting spinoff jobs...If 6 plants were built we would create 3000 full-time jobs, however we would would either have to dam up all our rivers or blow any CO2 targets out of the water..

But the biggest concern for me is the lies, we could bugger up our ground water and dam all our rivers for a few thousand jobs, and it won`t be sustainable, these fracked natural gas wells deplete very quickly,


Pretty shocking eh, these jobs aren`t coming, at least not very many, in fact there are rumors swirling around that there will be no land-based LNG plants built in British Columbia, they will be water-based, as on giant barges and or gasification ships, or a combination of both, the port of Kitimat, of Prince Rupert have logistic problems, we have the same skilled worker shortage and wages aren`t cheap in B.C....Christy Clark and the Liberals promised high-paying $100k plus per year family supporting wages...

And if that doesn`t raise the alarm bell, Japan has now succeeded in extracting ocean hydrates,  a 200 year supply of energy Japan can call it`s own..Japan won`t be held captive by anyone..
"TOKYO — Japan said Tuesday that it had extracted gas from offshore deposits of methane hydrate — sometimes called “flammable ice” a breakthrough that officials and experts said could be a step toward tapping a promising but still little-understood energy source. 

The gas, whose extraction from the undersea hydrate reservoir was thought to be a world first, could provide an alternative source of energy to known oil and gas reserves. That could be crucial especially for Japan, which is the world’s biggest importer of liquefied natural gas and is engaged in a public debate about whether to resume the country’s heavy reliance on nuclear power. 

Experts estimate that the carbon found in gas hydrates worldwide totals at least twice the amount of carbon in all of the earth’s other fossil fuels, 

making it a potential game-changer for energy-poor countries like Japan. Researchers had already successfully extracted gas from onshore methane hydrate reservoirs, but not from beneath the seabed, where much of the world’s deposits are thought to lie."


Exactly what the energy companies didn`t want to hear....The big new deal in LNG is Korean built LNG facilities, built on barges and giant freighters, Korea has the largest ship building facilities in the world now, and they are already building floating LNG facilities, facilities that can withstand offshore weather and waves, Kitimat inner harbour is sheltered, as is Prince Rupert, and breakwaters can be built if wave action is a concern..There is no reason any BC LNG facility needs to be on land at all, the natural gas isn`t on the coast, it`s in the northeast part of British Columbia, it will be piped to Kitimat or prince Rupert, pipes can merely be extended to mobile facilities on barges, facilities that can move if need be..


Exxon, BHP plan world's largest floating LNG plant off Australia

By Rebekah Kebede

PERTH, April 2 (Reuters) - Exxon Mobil and BHP Billiton are planning to build the world's largest floating liquefied natural gas (LNG) processing and export plant off the northwestern shore of Australia, despite growing concerns about the cost competitiveness of the country's LNG projects.
At around half a kilometre (0.3 miles) long, the vessel would be nearly as long as five football fields laid end-to-end and would be the largest floating facility in the world.

The plant would bump up Australia's current LNG production by nearly 30 percent, producing 6 million to 7 million tonnes per annum (mtpa), enough to fuel the LNG needs of Japan, the world's largest importer of the gas, for about a month.

Exxon and BHP's decision to develop the Scarborough field using floating LNG is another vote of confidence in the as yet untried technology, which energy companies hope will help cut down on the ballooning costs of developing gas.

Exxon, which detailed the plan in a filing with Australia's environment department on Tuesday, did not give a cost estimate for the plant.
Australia currently has $190 billion worth of LNG projects under way and is on track to replace Qatar as the world's largest LNG exporter by the end of the decade.

But the country has been plagued by cost inflation, and of seven LNG plants under construction there that are due to come online in 2014 or later, four have already announced cost blowouts ranging from 15 to 40 percent.


What I am talking about is not a one-off, British Gas has already announced that if it goes ahead and builds in British Columbia the facilities will be built in Korea and barged to Canada`s west coast where modules will be assembled, what is being proposed now is the next logical step, have complete facilities built in Korea, by Korean workers at Korean worker wages....It`s not just Exxon Mobile, it`s not just British Gas(BG)..It`s everyone, including these people..


"Australia’s second-largest oil producer, said producing liquefied natural gas on a ship off the country’s coast may be the fastest way to develop its Browse project. 

Woodside reached an agreement with Royal Dutch Shell Plc (RDSA) on how to develop Browse if the partners choose to develop the project using Shell’s floating LNG technology, the Perth-based company said today in a statement. 

The selection of a development concept needs to gain approval from all the partners, including BP Plc (BP/), according to Woodside...

“FLNG had the potential to commercialize the Browse resources in the earliest possible time frame and to further build the company’s long-standing relationship with Shell,” according to the statement from Woodside. 

Woodside earlier this month scrapped a plan to build an onshore LNG project estimated to cost $45 billion in favor of studying cheaper options as costs rise.

 After starting work on $180 billion in LNG plants on land in Australia, developers are considering about $85 billion in floating projects.

Floating LNG may be almost 20 percent cheaper than building a Browse project on land, Deutsche Bank AG said this month. A new onshore Browse development would have cost about $45 billion, JPMorgan Chase & Co. said in an April 12 report. 

While Woodside said earlier this month that it would consider a floating LNG plant offshore, a pipeline to existing facilities in Western Australia or a smaller onshore plant, Shell said its floating LNG technology is the best plan."


LNG and natural gas was our 2013 BC election, nothing else was discussed, the Liberals claimed this industry will solve all of BC`s problem, pay off the debt, pay off deficits at BC Hydro, BC Ferries, eliminate tolls on the port mann and golden ears bridge, a prosperity fund, eliminate the sales tax and creats hundreds of thousands of jobs, it is time we see some proof, three LNG export licenses have been granted, there is nobody stopping any of these companies from building their facilities..

Christy Clark went from town to town talking about $trillions for British Columbia from our LNG industry, one would think with $trillions available for profits these energy giants wouldn`t worry about spending a few extra $billion here and there, after all, $billions are just chump change compared to $trillions..

Anyway, the BC Liberals have the reins of power for the next 4 years, it`s time for them to come clean, they need to answer some serious questions..

Question 1...Is it true the largest LNG facilities proposed for British Columbia once built have a mere 250 full-time jobs with another 250- spinoff jobs?

Question 2...Where are the facilities being built, is it true or not true that the major energy companies who proposed projects in British Columbia are now looking towards South Korean built floating facilities that can be barged to B.C. and moved if things don`t work out..And if these facilities are built in Korea, is it not true that these floating facilities will result in very few temporary construction jobs?

The Straight Goods

Cheers Eyes Wide Open


Anonymous said...

Excellent article. I still can't get over the $170 Billion dollar debt. I have also heard that China is already establishing its own deal with Russia and has acquired access from the south for more production. My question is if it requires that amount of electricity how profitable is this product(with out subsidies) if the world price comes down as much as predicted.

Hugh said...

NE BC has a lot of natural gas. Except that it sounds like it needs to be fracked to be extracted.

We should use our own natural gas to power our own BC vehicles (cars, trucks, busses can be converted). The price of gasoline and diesel will keep going up.

We also need our natural gas to heat our homes.

If nat gas is used to power LNG plants, that will drain BC's nat gas reserves that much faster.