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 services.

“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.”

http://m.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/petronas-to-hire-hundreds-of-skilled-foreign-workers-for-bc-lng-project/article22016165/?service=mobile&utm_source=twitter.com&utm_medium=Referrer:+Social+Network+/+Media&utm_campaign=Shared+Web+Article+Links

 

__________________________

 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 project."

____________

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 Of B. C. featuring BCLNGA spokesperson David Keane...Important LNG questions Vaughn Palmer deliberately didn`t ask..

That viral post is linked here

 http://powellriverpersuader.blogspot.ca/2014/11/vaughn-palmer-voice-of-bcbc-liberal.html

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 unprofitable
* Soaring hydro, coal and domestic gas production cut LNG demand
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 unprofitable.
"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 gas prices.
"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 China Matters.
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 to China.

UNPRECEDENTED EXPANSION

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 projects.
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.

FIRE SALE

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."

http://www.reuters.com/article/2014/12/09/china-gas-imports-idUSL6N0TN1HM20141209

______________

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.

I won`t hold my breath

The Straight Goods

Cheers Eyes Wide Open