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garden bay, west coast, Canada
persistent digging,never say never

Saturday, December 13, 2014

Christy Clark`s LNG Obsession Crashes Down In Economic Landslide(No Plan B)






When will the BC Liberal Government get their head out of the sand and move on, when will Christy Clark shut her fat mouth and stop blathering about LNG..

The market on LNG has changed, there is a world glut of LNG at present, that glut will only grow larger when a dozen actual under construction LNG facilities come online in the next 2 years..

Christy Clark in New York blathering gibberish to Bloomberg, embarrassing everyone, including blindsiding her own chosen cabinet ministers..

Leaving Bill Bennett and others having to invent excuses on the fly to explain away Christy Clark`s derangement..

Below is some more cut n paste.....Cut n paste that confirms what`s been reported here at The Straight Goods for the last 3 years..

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Is The Canadian LNG Export Dream Dead?

Lower oil prices have killed off major plans for liquefied natural gas exports from Canada’s west coast.
On December 2 the state-owned oil company of Malaysia, Petronas, decided to shelve plans to build an enormous LNG export terminal in British Columbia, citing the falling price of oil. It is common for LNG contracts to be priced using a formula linked to the price of crude oil, so declining oil prices pushes down prices for LNG.


Petronas’ Pacific NorthWest LNG, as it was known, was a proposed $32 billion export terminal that would send LNG to Asia. The decision highlights how competitive global LNG trade has become, despite growing demand. Greenfield projects, such as Pacific Northwest LNG, face steep startup costs that become prohibitive when oil prices fall.
Related: Russia-China Deal Could Kill U.S. LNG Exports
Although low oil prices may have been the icing on the cake, Canadian LNG projects were facing serious obstacles before oil prices plummeted. There is stiff competition from a slew of LNG projects already under construction in the U.S. and Australia, which will come online much earlier than anything from British Columbia.
Several LNG export facilities in the U.S. are not starting from scratch, for example. The Sabine Pass terminal on the Gulf Coast and the Cove Point facility on the Chesapeake Bay were both originally constructed to import LNG rather than export. The original facilities were put on ice when the U.S. no longer needed LNG imports. Now, companies are retrofitting them to handle exports – a much cheaper process than building a new facility.
The indefinite cancellation of Pacific NorthWest LNG is a major setback for Canada’s plans to export natural gas. The move comes after BG Group abandoned plans to build a separate LNG export terminal on Canada’s west coast. Chevron is also in limbo with its Kitimat LNG project after its partner Apache pulled out.
The inability to break ground on a series of LNG export terminals is also a major blow to the province of British Columbia, which has banked on natural gas exports to meet certain budget objectives. B.C. Premier Christy Clark was originally very bullish on the industry, telling constituents that the province could become debt-free as a result of exports.


In 2013, Clark predicted that a full-fledged LNG export industry would be up and running by 2020, which would bring in $4.3 to $8.7 billion each year for the province. But her government made major concessions on taxes after several companies wavered on final investment decisions. Petronas even threatened to cancel its project because of proposed tax rates. In October 2014, Clark’s government proposed a 3.5 percent LNG tax, half of the original proposal.
The move was intended to offer a more attractive investment climate yet it was not enough to overcome high costs and falling oil prices.

Related: LNG-Dependent Japan Tries To Gain Leverage Over Pricing
The LNG market has dramatically changed since the B.C. government made its 2013 budget projections. Along with lower oil prices, the demand for LNG in Asia – the target market for Canadian exporters – looks quite a bit softer than it once did.

Japan is inching closer to a restart of its nuclear reactors, and as the world’s largest LNG importer, that could put a dent in demand. China’s economic growth is lower than expected, slowing the rise in energy consumption. And in what may have been unimaginable in 2013, China inked two major natural gas deals with Russia this year. If the deals are completed and the pipelines constructed, Russia could end up providing China with 17 percent of its natural gas needs by 2020. All of these trends narrow the market for Canadian LNG.

CBC News described British Columbia’s Premier Christy Clark as having an “almost singular focus” on LNG, but her government will need to find another silver bullet to fix provincial debt with LNG off the table 

 http://oilprice.com/Energy/Natural-Gas/Is-The-Canadian-LNG-Export-Dream-Dead.html

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The entire world is telling British Columbia that any plans for riches and debt elimination from LNG are dead n buried,...The market changed, S. Korea and Japan have and are restarting the nuclear facilities, a major LNG gluts exists right now, 150 million tonnes more of export capacity are coming online over the next 2 years, actual facilities being built, not merely blather but shovels in the ground construction..

Russia and China in bed together...Asia, in particular China played the energy companies and Christy Clark like a fiddle...Suggest unlimited growth potential, get energy giants to build massive excess LNG capacity then snub them, what a way to drive down energy prices...The same thing is happening right now with oil, excess oil on the market..

And you won`t see protests in the streets demanding higher oil prices, this Christmas, right now small retailers are reaping gains, people, little people have extra money to buy things like food, clothes, gifts, all that money that went into the gas tank is now finding its way into small retailers..

90% of the public are thrilled with cheaper fuel prices, only the investor class is crying, those 1% percenters will find lumps of coal in their stockings not dividends..

which brings me back to the media, how come only Norman Farrell...

  http://northerninsights.blogspot.ca/2014/12/lies-my-energy-minister-told-me.html

Andrew Nikiforuk ......

http://thetyee.ca/Video/2014/11/17/Andrew-Nikiforuk-on-LNG-and-Petro-State-Politics/

And The Straight Goods are the only ones telling British Columbia the truth...Vaughn Palmer has gently nibbled around the edges of the BC Liberal`s disastrous one mythical industry focus..

When will Keith Baldrey and Global news inform the public of the bad news...When will the Vancouver Sun managing editor, editorial board advise the BC Liberals to move on..

When will Michael Smyth start writing whimsical columns laughing at Christy Clark..

When will BC`s media start doing their job....When will BC`s media stop playing the role of High School girly girl Cheerleaders, wearing short skirts, tumbling and flipping around, when..

BC`s big daily newspapers wonder why their subscriptions have tanked, CKNW flummoxed as to why their radio ratings continue falling like the price of oil.

Reuters...Bloomberg...Foreign Policy Magazine...Zero Hedge....All those outfits and more..Even the IEA..International Energy Agency is saying energy glut is upon us, LNG is now a marginal investment as best...China selling off contracted LNG cargoes, selling them at a loss..

Everybody knows what`s going on in the LNG market.....

Christy Clark and Rich Coleman...We know why they are in denial, no plan B...no clue, only massive debt those BC Liberals have incurred and no way to pay the bill...Christy Clark will keep clucking until her goose is cooked..Rich Coleman is surrounded by hot noxious gas and will remain giddy til he`s dragged off in a Straight Jacket..

But what excuse does Global BC have...CTV have...Vancouver Sun..The Province..CKNW...What excuse(s) do you have..

Oh, that`s right...CAPP advertising dollars..Kinder Morgan advertising dollars and now CPC advertising dollars...CPC..Conservative Party of Canada..

Get ready for a February 14th/2015 election..



The Straight Goods

Cheers Eyes Wide Open



3 comments:

lumberron said...

Hi Grant it just gets better and better doesn't it.Anyone who followed this file has known for a long time this is dead.I can't fathom that anyone would believe the BS spewing out of her mouth.This province has run up massive overruns adding to our debt and all that spews out of the MSN and the LIbs is fast cats.Unfucking believable.Listening to Vaughn (the pawn) he seems to think that if 1 of these projects commits by 2017 that she gets a pass.She was the douche bag that was yapping jobs,good bye sales tax,prosperity fund,large royalties and where the fuck are they.Not 1 thing has come from this dream and nothing will ever and yet the MSN says shit.They all know just like the rest of BC should if they have a partial brain.It is sickening how fucked we are.Then we have dumb dumb Dejong bragging about a surplus.Well the prick took in an extra 600 million just in MSP premiuns that go up every year.After getting my highest hydro bill ever I can't tell you how pissed I am to even think about those POS living off all of our backs.And that piece of work Virk is another gem.3 ex cops in their party and everyone of them have dirt hanging on them.They make me sick

Grant G said...

Lumberron...

Don`t be shy.

Tell us you really feel.

Relax and put on an extra sweater, Turn down the heat.

Cheers

Hugh said...

BC debt is increasing not decreasing. Now there's talk of increasing the BC sales tax (in Metro Van), not getting rid of it.

http://www.cbc.ca/news/canada/british-columbia/pst-hike-of-0-5-proposed-for-metro-vancouver-transit-referendum-1.2870043