I haven`t written much on LNG lately because there`s nothing happening, no big announcements, no final investment decision no nothing, in fact the only big LNG news has as of late has come in the form of black swans..
David Hughes, a world renown energy geologist has just blasted the NEB and BC Government for what he calls blatant over-estimated reserves and export capacity, the Commensense Canadian website has highlighted his first-class and in demand work in this post..It`s a must read
The only other LNG news is....Shell.....Shell is quietly dumping its LNG holding around the world, being careful not to ring too many alarm bells, truth be told Shell sees the black swans and is doing its best to avoid them, while concentrating their efforts on profitable ventures..
Everything LNG passes my eyes, anything relevant you readers and contributors are the first to see it..
On Twitter I saw a tweet Merv Adey retweeted, the tweet was from Norman Specter, it was a tweet message to Christy Clark, Norman Specter advised Christy Clark and other BC politicos to read before continuing to blather about the riches of a BC LNG industry..The article Norman Specter linked in his tweet was aired in the Globe n Mail...
Before I highlight the pertinent parts of the article I need to toot The Straight good`s horns..
The only website in British Columbia who talked about Japan restarting its nuclear facilities is here...
We noted that when Japan restarts its nuclear facilities their LNG demand and needs will fall dramatically..
Also reported here is Japan and other Asian countries will not sign lucrative LNG buying contracts with an impending glut on the horizon..
Reported here the $100 billion dollar prosperity fund, our debt retired, all crown debt paid off, sales tax eliminated, tolls removed and streets paved with gold all from LNG is bogus sloganeering from a corrupt and failed BC Liberal Government.....Now, for you regular readers of The Straight Goods some old news, some old news reported as new news in an article in the Globe n Mail..
A little cut n paste..
"B.C., however, doesn’t yet have a single LNG project under construction, in part because of long standing problems in finding buyers willing to sign contracts. Japan, for all its energy hunger, is sick of the prices it’s paying. Post-Fukushima, Japan’s LNG imports have soared by 30 per cent. It’s been financially painful. Natural gas is much more expensive than nuclear energy, which helped push the country’s trade deficit to $72-billion in 2012.
“So economic thinking tells us that we have to use our nuclear reactors when the independent regulatory authority verifies their safety,” said Masakazu Toyoda, who heads the Tokyo-based Institute of Energy Economics. Companies have applied to restart 16 reactors; the first could be back up and running this year.
If that happens, Japanese LNG demand stands to decline, rather than rise, at a time of soaring supply. Mr. Toyoda’s institute produces a world LNG forecast. So many companies are looking to build new plants that if they are all built, by 2025 the world would face a roughly 50 per cent oversupply, even under a “high demand” scenario. The LNG ambitions of Canadian business and political leaders are founded, in part, on dreams of fat profits from selling cheap domestic gas at high international prices. Mr. Toyoda thinks that’s unlikely: “Except for transportation and liquefaction costs, the price is going to be identical for all regions,” he said.
At Tepco, meanwhile, Mr. Koizumi can’t quite suppress a grin over something he already sees developing: a buyer’s market.
“To be honest,” he says, “there are many candidates for us to contract with.”
I recommend reading the entire article, it starts slow but really takes off at the end..
and for those interested here are some Straight good links to previous LNG articles laying all this out..
Maybe one day our BC media, also known as the Stooges will start asking questions, start reporting, start doing their job and stop wandering around the cutting room floor looking for BC Government press releases and reusable gum under their desks..
The Straight Goods
Cheers Eyes Wide Open