Statement by PETRONAS President & Group CEO Tan Sri Dato` Shamsul Azhar Abbas Regarding LNG Development in British Columbia
Vancouver British Columbia October 6th/2014-Sri Dato` Shamsul Azhar Abbas made the following statements today regarding the proposed investment to build and operate The Pacific Northwest LNG LTD. export facility in Prince Rupert, British Columbia and its associated natural gas reserves operated by Progress energy Canada LTD. located primarily in the north Montney region of northeast British Columbia
PETRONAS is encouraged by the commitment expressed by the British Columbia Government regarding the Pacific Northwest LNG (PNW LNG) project during recent meeting with premier Christy Clark and Minister Coleman in Vancouver. During the round of meetings, PETRONAS and the Government of British Columbia agreed on clear milestones, action plans and deliverables for both parties to support project competitiveness necessary to undertake a final investment decision(FID) by mid December 2014.
In addition, PETRONAS will continue to work with the Government of Canada and its agencies to advance the regulatory process and clarify the fiscal framework associated with this new industry in Canada.
Fundamentally PETRONAS believes that the PNW LNG project has the ability to monetise, add value and link BC natural gas to the global market, to the benefits of Canadians, especially British Columbians, nonetheless the reality of the global LNG market is that we are facing overhang and decreasing demand that creates downward pressure on LNG prices, in this market environment, the ability to secure market and customers is paramount.
Coupled with softening crude prices, there is a need for international energy companies like PETRONAS to seriously prioritize and reassess our investments. The proposed fiscal package and regulatory pace in Canada threatens the global competitiveness of the PNW LNG project. This is further exacerbated by preliminary project costs, which indicates cost of local contractors to be higher and not benchmarked to global contractor`s costs.
The additional tax and high cost environment will negatively impact the project`s economic viability and competitiveness, in fact, in our last portfolio review exercise, the current project economics appeared marginal. Without material cost reduction efforts cross the project we`ll have a tough time reaching a positive final investment decision by mid December 2014.
In order to remain competitive, PETRONAS needs to secure consensus on key principles vital to the success of this project by the end of October. Missing that date will the impact of having to defer our investments until the next marketing window, anticipated in 10-15 years. At this juncture PETRONAS firmly believes on the urgent need for stakeholders to collaborate and come to an agreement, rather than act as opposing parties at the negotiation table.
In light of this, the next few weeks will be critical in ensuring commitments made during the last meeting will be followed through by creating a tangible environment which stimulate competitiveness and investor`s confidence in British Columbia. PETRONAS and its partners look forward to working with the British Columbian and Canadian Governments to advance with pace, clarity and purpose in turning the vision of a Canadian LNG industry into a reality.
Senior adviser, corporate affairs, Pacific Northwest LNG
Vice president, Corporate affairs, Progress Energy Canada LTD
Let me fill in the blanks.....
PETRONAS wants temporary foreign labour, and contractors...
Then Christy Clark while in India offered up LNG jobs to the Indian populous, reported by many, including John Horgan and the NDP...BC`s mainstream media ignored the story
India workers offered B.C. 's LNG jobs by Christy Clark
Reported widely and well known to LNG industry experts these LNG plants are not going to be built in British Columbia, they are going to be built in Japan and South Korea...This fact was admitted by British Gas and others, including
"BG(British Gas) 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."
Laura Lau, Senior Portfolio Manager at Brompton Funds on BNN stated last month(October 16th/2014), (as did British Gas 2 years ago) that proposed LNG plants in British Columbia will not be built in British Columbia...Laura Lau stated that these LNG plants are actually going to be built in S. Korea or Japan, these modules and mainframes will be built in S. Korea or Japan and barged to British Columbia where they will be assembled.
You can click the below link and watch, hear Laura Lau admit where these frames and modules are to be built..(just past the 4 minute mark)
(just past the 4 minute mark is the offending statement by Laura Lau)
Petronas and the BC Government are as we speak lobbying Ottawa to allow LNG plants manufacturer status so these foreign energy giants can write off everything against taxes, against Canadian taxes, including foreign labour and foreign built mainframes and modules, ..We are talking about $5 to $6 billion per year in tax write-offs..Per LNG plant!
The below link is an article about spill after spill in Alberta, toxic oil and toxic fracking fluid spills, ..no media reported any of the spills, the silence was/is deafening..
There`s a whole lot more...PETRONAS wants no part of any environmental assessments, they want their project to proceed regardless of destroying the Skeena river`s wild salmon population..
It has been suggested that Christy Clark and Rich Coleman are preparing to walk all over First Nations and make an order in council(OIC), a private cabinet decision out of the public`s eye on exempting PETRONAS from satisfying First Nations and British Columbians legitimate concerns over destroying wild salmon, in other words, an OIC exempting Petronas from any environmental assessments..If you think I`m mistaken...Check out the below information, BC Liberals through OIC exempted LNG from environmental assessments, caught red-handed, that betrayal to First Nations and to BCers is still ongoing..
The 3-day conference, titled “Striking the Balance”, was designed to discuss both the economic opportunities and potential environmental impacts of increased fracking in the nation’s territory to supply a gas-hungry, proposed BC LNG industry. But things got off on the wrong foot when the BC Liberal government announced on Tuesday that new sweet gas processing plants would be exempted from environmental assessment. The news came as a shock to First Nations, who immediately made it clear they had not been consulted about the change.Chief Gale alluded to the betrayal in her comments from the podium at the event today:
"The word from my elders is you treat people kind. You treat them with respect even when they’re stabbing you in the back…so I respectfully ask government to remove themselves from the room."
Despite First Nations standing firm against PETRONAS, ..First Nations are not opposed to LNG but PETRONAS`s decision to build on LELU island is all wrong, BC`s second most productive wild salmon river the SKEENA would be decimated..PETRONAS can find another location, with 17 LNG proposals locations are plentiful, but not all locations are practical or environmentally friendly, LELU island is one of those locations ill-fitted for LNG..
Skeena River First Nations oppose Petronas LNG plant near Prince Rupert
2 days ago it was quietly announced that BC is getting 2 new ferries, they`re to be built in Turkey,..odd shaped ferries at that, not people movers, cargo movers..I was wondering why, and what these foreign built ferries are going to be used for..
Seaspan Ferries said that Sedef Shipyard of Turkey has been awarded the contract for the construction of two new dual-fuelled (diesel and LNG) ferries.The 148.9 metre ferries, both expected to be in operation by late 2016, will accommodate up to 59 trailers. Construction is scheduled to start in early 2015.
SFC’s contract award comes on the heels of an extensive and competitive procurement process that included more than 40 shipyards around the world, as well as a thorough analysis of Seaspan Shipyard’s capacity to construct these vessels at its new facility at Vancouver Shipyards, the company said in a statement.
“Our decision to have a non-Seaspan shipyard build our new ferries was not made lightly, but it was a simple decision based on capacity,” said Jonathan Whitworth, CEO, Seaspan
Vaughn Palmer on Voice of BC had on as a guest David Keane of the BCLNGA, Vaughn Palmer failed to ask any real questions, here is what Palmer should have asked...Check out the below link.