British Columbia`s LNG Industry Is Officially Dead And Buried, John Horgan Goes To Ground
Good day readers, as you know The Straight Goods almost single handed has debunked and shredded the BC Liberal`s LNG bullshit spin, dismantled BC Liberal advertised LNG job numbers, tore apart their revenue forecasts, blasted Christy Clark`s LNG clucking from beak to egg-laying butt...
This website was ahead of the curve, ahead of Reuters, CNBC..Ahead of everyone...Christy Clark proclaimed yesterday that Petronas was a done deal, she lies..Furthermore, Petronas announced in the public domain that if indeed they were to build an LNG plant...Of $11 billion in spending on their LELU island proposed project over $8 billion of that money is being offshored and outsourced, not to mention Petronas`s claim that they will be using over 50% TFWs..Temporary Foreign Workers....Down at the bottom I have cut n pasted an article from Reuters....But First from The Globe N Mail
"The reliance on foreign expertise highlights the complexity of
constructing the $11.4-billion export plant in northwestern British
Columbia, of which $8-billion would be spent on imported goods and
“We will hire Canadians if Canadians are available to do
the job. It’s obviously easier to bring in somebody local into the job
than to bring foreign workers in,” Pacific NorthWest LNG president
Michael Culbert said in an interview Tuesday. “It comes down to the
ability to source Canadian labour, both the numbers that we need and the
expertise that we need.”
Not only is Petronas telling British Columbia near every aspect of their LNG plant build proposal has been off-shored to suppliers and producers overseas..
"The proposal to rely heavily on help from overseas, especially to
assemble LNG modules imported from Asia, is a sensitive topic after
Ottawa moved earlier this year to curb abuses of the temporary foreign
worker program by tightening the rules. But Mr. Culbert said hiring
foreign labour isn’t an exercise in cost savings for the Petronas-led
Petronas would be importing into British Columbia the entire LNG plant, only the assembly takes place in British Columbia, no manufacturing in B.C., even worse, PETRONAS wants British Columbia Government and the Government of Canada to allow all those $billions spent overseas to be written off against Canadian owed taxes..
I personally emailed John Horgan and asked him to write an op-ed piece denouncing Petronas`s proposed actions, particularly when it comes to outsourcing, offshoring and TFWs...I offered the NDP`s John Horgan an open invitation to have his opinion pieces published here at The Straight Goods..I also suggested That Norm Farrell would..Ross K would and the Tyee would probably also publish said John Horgan opinion pieces..
My email to John Horgan asked him to put in writing, to make it perfectly clear to all big energy companies that outsourcing and offshoring at those levels is outrageous, not acceptable, ...To tell these energy giants if this is how they intend on going forward in British Columbia to take their welfare industry elsewhere, ....!
Mr. John Horgan has, at least for now declined our offer, instead he has decided to play footsy with The Province`s Laziest hack writer Michael Smyth, ..And Vaughn Palmer, another BC Liberal hack in sheep`s clothing.....As you know we took Vaughn Palmer to task for his pathetic lacklustre episode of the Voice OfB. C. featuring BCLNGA spokesperson David Keane...Important LNG questions Vaughn Palmer deliberately didn`t ask..
It looks like to this Powell River Persuader that John Horgan has conceded the high-ground and jumped into bed with these tax-evading, law breaking energy corporations, John Horgan`s version of the NDP appears to BC Liberal light, John Horgan by remaining silent on PETRONAS proposing outsourcing and offshoring 90% of the value of their LNG plant proposal, by remaining silent is the same as John Horgan nodding his head in agreement with PETRONAS....I had other advice for John Horgan too...It appears Horgan is using the same useless advisers who led Adrian Dix...Led Adrian Dix to a monumental failure..I`ll have more to say on this in a future post..
Further below is the Reuter`s article, cut n pasted....I have no problem reporting their story, after-all..Everyone in the LNG reporting game is now taking from and using The Straight Goods work from years ago...Indeed the big media players are late to the honest reporting on LNG game, and now they just steal from the little guy without attribution given...All this information is/was available in my right side-bar..(LNG Files)
LNG boom over as China looks to sell out of long-term deals
Sinopec plans to offload Australian, Papua New Guinea
supplies * Weaker economy, cheaper retail gas make LNG imports
* Soaring hydro, coal and domestic gas production cut LNG
By Oleg Vukmanovic and Henning Gloystein
MILAN/SINGAPORE, Dec 10 (Reuters) - China's state-controlled
energy giant Sinopec wants to sell some long-term liquefied
natural gas (LNG) import deals as a slowing economy makes them
unprofitable, sources say, signalling the end of a five-year
boom fuelled by rising Chinese demand.
Asia's thirst for energy has helped drive a "dash for gas"
in producer countries from Australia to Canada, with LNG
emerging as the fastest growing fuel source since the beginning
of the century on the back of soaring Chinese imports.
But just as long-planned projects start to come on stream
China's economy is stuttering, which is likely to crimp demand
and pull down domestic gas prices to levels that make imports
"We talk about China choking on LNG. There's just too much
coming onto the market," said Gavin Thompson, Head of Asia Gas
Research at Wood Mackenzie.
Analysts say falling crude prices, which have dropped around
40 percent since June, are another factor weighing on Chinese
"Based on the recent fall in oil prices... there is an
increased risk that there could be a near-term cut in natural
gas price (in China) for the first time," Bernstein Research
said on Tuesday, adding that at lower levels "LNG and pipeline
imports make little sense for producers".
And even if retail prices do not fall, imports may not be
needed as the high gas price at home caps demand. "Slower economic growth and higher domestic prices ... are
tempering demand," said Michal Meidan, director of consultancy
In response, China is trying to find buyers for contracted
LNG on the international market, which is already oversupplied
due to slowing demand and rising output that have seen Asian LNG
prices halve this year, with analysts expecting another 30
percent fall by 2015.
"There is at least one SPA (Sales and Purchase Agreement)
being negotiated with a Chinese buyer that has a lot of
destination flexibility, including to terminals outside of
China," said one source involved in LNG shipments from Australia
Sinopec is planning to offload LNG from new
export plants in Australia and potentially Papua New Guinea to
BP, advisory and trading sources with knowledge of the
matter said, amid growing unease over the scale of an
unprecedented expansion that has seen the construction of 11 LNG
import terminals since 2006 and includes plans for 25 more
BP and Sinopec declined to comment, but the sources said
that, beyond selling excess cargoes into the spot market, other
options being discussed included selling parts of its long-term
agreements to another company. Three industry sources said Sinopec was in early talks to
sell off chunks of the 20-year, 4.3 million tonne per annum
(mtpa) supply it bought from Origin Energy's Australia
Pacific LNG plant due to start in 2015.
Sinopec invested in the Australia Pacific LNG in 2011 and
2012, when Asian spot LNG prices averaged $14.8 per mmBtu,
compared with less than $10 per mmBtu now. It may also sell excess volumes coming from its 2 mtpa stake
in Exxon Mobil's Papua New Guinea LNG, in which it
invested in 2009, when LNG prices were low but China's LNG
demand was expected to grow for decades to come.
Tumbling energy prices may make reselling LNG difficult as
consumers across Asia also scramble to offload excess volumes,
contributing to an emerging glut.
Sinopec is exploring options to sell BP up to 1 mtpa over
2016 and 2017 from its Australian project, which could be
extended to run until 2020, the sources said.
While oil traders, including in China, often take advantage
of low prices to build up long-term reserves in preparation for
supply disruptions or higher prices in the future, stocking LNG
is more costly as the gas has to remain liquefied in
super-cooled facilities or pumped into pressurized gas storage
tanks after being regasified.
The sell-offs could also end a race by Chinese energy firms
to enter the LNG market.
Sinopec, CNOOC, CNPC and PetroChina
all made big LNG investments in the past years, racing to outdo
competitors from Japan and South Korea, which remain the world's
biggest LNG importers.
"The build-out was driven by competition between the
companies for market share," Meidan said.
LNG importers also face stiff competition from other fuels
such as pipelined gas, hydroelectric and coal-fired power
generation, as well as domestic shale gas production.
"Coal and hydro are hard to beat over price," one LNG trader
said. "Russian and central gas Asian pipelines will come in, and
one day Chinese shale will add to our long list of competitors."
That is it folks...profit from LNG exports is over...Petronas or any energy company building LNG plants in British Columbia will be claiming losses not profits, billions of cubic ft of natural gas given away and we the taxpayers will pay for that privilege...The LNG industry changed, financials changed, unfortunately BC Liberals and John Horgan are stuck in a time warp....Frozen in time, can`t see the forest through the trees..
Sad really, I thought John Horgan was smarter than that, it appears I was wrong....If John Horgan doesn`t change his ways his legacy will be that of an ineffective opposition leader...Perhaps David Eby or Rob Fleming has the right stuff, has the balls and courage to call out a corrupt media, call them out for publishing nothing but fluff n puff cheer-leading pieces on LNG...
Funny stuff, somehow John Horgan believes he has friends at Global/Vancouver Sun or Province newspapers..
Every election cycle, Palmer and Smyth are slightly critical of the BC Liberals...until..until we get within 6 months of the election then all bets are off..Greased weasels, memo gates, op-eds from every slimeball corporate whore in town, all calling the NDP economy killers, debt makers while ignoring any and all BC Liberal crimes, ignoring a brutal BC Liberal record of debt accumulation and scandals..
Somehow John Horgan has forgot how this game is played.
Go read up on Dave Barrett Mr. Horgan.
Get back to us when you find your reason for wanting to be premier.