Written by Grant G
"What a tangled web we weave when first we practice to deceive"
There is no better quote available to describe the con job Christy Clark and the BC Liberals, along with the LNG industry foisted on the British Columbia voters and public in general, every step of this story has been riddled with false facts, over hyped hyperbole and plain old lies....
Damning report after damning report are glossed over by the BC Government, red flags waving everywhere, stark dire warnings abound and still the players continue to lie, to con to report rose coloured opinions as facts...When will the adults start acting their age, start governing for the betterment of British Columbia`s populous, when damn it when?
An energy industry expert recently called BC`s proposed LNG industry "not viable"...The man cited facts, the fact that by 2017 there will be over 100 million tonnes of LNG, 100 million tonnes of excess supply per year on the market, more gas available than what is needed, he goes on to say that this excess supply issue won`t be resolved by anything except time, as in decades, as in about 2040 before demand catches up with supply....There are American LNG exports plants online now and many more nearing completion, there are multiple Australian LNG export plants coming online that have yet to secure markets for their product, that being LNG...
Are we to believe that Petronas and other large LNG exporters are going to spend $billions of dollars to enter British Columbia, set up a greenfied industry, pay enormous provincial and federal taxes while selling LNG at a loss, or even at a breakeven price, something has to give, and that give, so far has been the BC Liberals slashing taxation rates, offering free electricity(Site C Dam to cost BC Taxpayers $14 billion dollars), taxpayer funded access roads and terrain clearing...Along with the federal Government offering more plant build write-offs..
The media, stories come out in the media here and there with snippets of truth and then a few days later more media stories on LNG come out that revert back to the big industry lies, paid lobbyists like the BCLNGA revert to promoting proven lies, ....For example, PETRONAS....I keep reading stories how PETRONAS has already invested $5 billion dollars in BC...
That is a lie, PETRONAS bought for $5 billion dollars Progress Energy, they bought an existing company operating in BC`s Peace River region, they now own that asset...
Stories about PETRONAS spending $36 billion dollars on their proposed BC operation, another lie...PETRONAS is planning, proposing spending on a BC LNG export plant $11.4 billion dollars ....
That sounds like a big number, a big investment into British Columbia, but it`s a lie, an admitted lie...PETRONAS, who by the way is looking to slash that number has admitted, admitted to those listening that of that $11.4 billion dollars over $9 billion is going to be money spent overseas, in Korea, in Japan, almost every part of these plants will be built overseas and shipped to British Columbia on barges, ....PETRONAS wants the provincial and federal Governments to allow you the taxpayer to pay for these foreign built facilities...These big energy companies cite, and use the Australian model as a template, ...We will talk about the Australian experience further down..
Petronas wants engineering work for B.C. LNG venture to be shifted offshore
VANCOUVER — The Globe and MailPublished
Petronas plans to push contractors to shift more engineering work for a proposed B.C. liquefied natural gas venture to lower-cost centres offshore as the Malaysian energy giant squeezes suppliers.
Of the total $11.4-billion in estimated construction costs for the Petronas-led Pacific NorthWest LNG export terminal at Lelu Island, there would be $8-billion worth of imported goods and services spread over a five-year period.
It is in that international component where Petronas hopes to find the bulk of cost savings, but the state-owned company will cast a wide net abroad and in Canada, including having TransCanada Corp. re-examine ways to make its proposed $5-billion natural gas pipeline project more efficient.
PETRONAS, besides outsourcing overseas the procurement of 95% of the modules required for their plant, they have also stated that half the workers will be temporary foreign workers..
Petronas to hire hundreds of skilled foreign workers for B.C. LNG project
"A liquefied natural gas venture in British Columbia led by Malaysia’s Petronas anticipates having to hire hundreds of skilled foreign workers during construction, underlining the skills shortage in Canada and the challenges of recruiting labour to build energy megaprojects.
Skilled foreign workers will account for almost 40 per cent of the work force required to build the proposed Pacific NorthWest LNG terminal near Prince Rupert, according to regulatory filings. At the peak of construction, there could be roughly 2,460 Canadian workers and 1,540 foreigners at the terminal site on Lelu Island.
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."
PETRONAS provides the Government of Malaysia almost 50% of the country`s entire budget...Petronas is not in the position to make peanuts, or breakeven, if Petronas isn`t making gobs of money, if Petronas is making thin margins there will be accounting tricks, financial losses reported and the only loser will be the British Columbia and Canadian taxpayer, BC will find itself in a position of exporting gobs of our finite resource of gas for a financial big fat nothing, despoiling our northern landscape and abusing trillions of gallons of fresh water, all for no return..
Red flags waving and alarm bells ringing, yet here in British Columbia the BCLNGA and BC Liberal Government are still waving their pom poms..
The Financial Post is reporting the same thing, massive amounts of new supply coming on the market, more supply than demand means one thing, a buyers market, ...
After oil overload, a glut of natural gas may be next to flood the world’s energy markets
"Having started last year strongly, the Asian spot market for LNG tanked after it was dragged back by the sharp fall in crude oil, which started to take hold in August. By the third quarter, spot LNG prices in Asia had reached a three-year low and have barely recovered. However, a bigger concern to the overall health of the LNG market will come from the glut of new supply, which will begin to increase this year and reach a peak by 2017 as major projects in Australia come to fruition. Some experts fear the market for LNG could soon become saturated, despite the steady increases in demand being forecast.
Projects reaching their final phase of construction in Australia will add 58m tonnes of LNG supply to the market by 2019. By then, the country is expected to become the world’s biggest exporter of LNG – overtaking Qatar – with 84m tonnes of total capacity.
We expect the LNG market to become more volatile over the next few yearsWorldwide, the figures grow to 122m tonnes of new LNG supply by the end of the decade.
“We expect the LNG market to become more volatile over the next few years as it responds to ’lumpy’ supply and market-side additions plus exogenous supply and demand factors,” said Mr Walker."
Japan`s spot market for LNG has already collapsed, and....And Japan is restarting two nuclear plants in June with plans to start most of the shuttered nuclear plants over the next two years, this means one thing and one thing only, Japan`s LNG use is set to collapse big time, Japan, the world`s biggest consumer of LNG will soon be curtailing their LNG imports..
"The average price of spot-LNG imported into Japan that was contracted in February 2015 was at $7.6 per mmbtu on DES basis, Japan’s Ministry of Economy, Trade and Industry (METI) said in a statement."
This will result in further downward pressure on the price of LNG....The breakeven price for LNG from British Columbia is an estimated $12 dollars, ....The current price is almost half of that price now...
China is a large market for LNG but that too is in doubt, China has signed a $trillion dollar gas supply deal with Russia, a direct pipeline, no need to freeze the gas, no need for expensive liquefaction plants and regasification plants on the other end, even more detrimental to the future LNG industry is the rise of green technology to produce electricity, China has a massive supply of inexpensive solar panels, China is embracing clean, really clean green technology to produce electricity, ...Many reasons for that, one is less reliance on foreign markets for energy the other is the physical health of the population..Check out this video on China`s pollution, a documentary of facts on the ground, or should I say pollution facts in the air...(China Government has banned the documentary, too late, it got out and has gone viral inn China)
The Stephen Harper regime, so against green technology they slapped massive tariffs on Chinese solar panels, so much for free trade, ....Green technology for producing electricity is set to be as low or even lower than fossil fuels in the near future..
The Globe and Mail: Tariffs on Chinese Solar Panels May Hurt Canadian Renewables Industry
New import tariffs on Chinese-made solar panels threaten to dent enthusiasm for solar power and slow the shift to renewable energy in Canada, some industry players warn.
A decision last week to impose duties on Chinese imports was hailed as a victory for Canadian solar panel manufacturers, but it is raising concerns that prices will spike, pushing up the costs of installation and depressing demand
Solar Energy to be cheaper than fossil fuels in 2017
Posted by Greener Tomorrow
According to GlobalData, harnessing the sun for energy generation will become cheaper than burning fossil fuels within the next couple of years. They project that the cost of producing solar energy will significantly drop which would make it a cheaper source of energy than current fossil fuels.
According to the GlobalData report the United States will be the first to reach the point where the cost of solar power will be equal to that of fossil fuels. China won’t be far behind, reaching this point in 2015. If this trend continues the cost of producing solar energy will drop even more, resulting in a lower cost of energy from solar panels. GlobalData states that in 2017 the price of solar power will be lower than that of fossil fuels.
When there is a glut of supply prices will fall, these LNG plants are so expensive, so costly, LNG will soon become obsolete as a fuel for creating electricity, natural gas will still be used, delivered via pipeline, no $billion dollar liquefaction and regasification plants required..
The entire LNG industry is based on lies, fraud and false economics..
We need only look at Australia, and in particular Australia`s future..
"Australian exports of LNG are expected to pick up substantially as a number of large-scale LNG projects begin production over the next few years, according to RBA analysts......
Most of Australia’s current LNG production is exported to Asia; more than 80 percent is exported to Japan, while China and Korea account for much of the remaining share. The LNG from Australian projects under construction is also committed to Asian purchasers under long-term contracts, albeit with more diversification in the destination of these exports. However, some projects under construction have volumes that are not yet under contract, as well as volumes assigned to the producer’s own portfolio the ultimate destinations for these LNG cargoes are uncertain, stands in the report.RBA said that its current estimates (under the assumption that the production ramp-up for projects proceeds as publicly indicated) suggest that China will purchase around 20 percent of Australian LNG exports under contract by 2020, while the share of exports to Japan under contract will fall to around 45 percent. The share of exports to other regional trading partners will also rise, with small increases in exports to Malaysia, India and Taiwan.
There are a number of factors that are likely to affect the dynamics of the Asia-Pacific LNG market in the medium term. US LNG supply is expected to increase considerably as technological advancements and a period of high energy prices have led to a dramatic increase in assessments of recoverable resources of natural gas and oil from unconventional sources. This has spurred a rapid surge in unconventional natural gas and oil production, which is expected to result in US natural gas production exceeding domestic consumption by 2017, RBA said.
Do you see that above, not even counting a massive amount of US supply coming, there are millions of tonnes of Australian LNG coming online that have yet to find a home, meaning no buyers, this can only be a bad sign for LNG exporters...When prices fall and fall they will, these energy giants along with their powerful lobbyists, who do you think is going to get the short end of the stick, who won`t get paid, corporate shareholders or public taxpayers and government?...Taxpayers will be left holding an empty bag
LNG is soon to be the world`s largest welfare industry, an industry that will survive on subsidies and taxpayer dole...And to what end, despoiling water, transforming pristine landscapes, turning pristine landscapes into lunar landscapes..
Still with Australia, in a recent report, Australia will see no improvement in their standard of living, cited cause is... Because of a very low amount of employment in these LNG plants once built(200 full time employees at most at the very largest LNG plants)....Because of foreign ownership, and because of massive tax writeoffs the LNG industry is/will be providing few benefits to Australia as a whole...
"The effect on Australian living standards will be less noticeable given the low employment intensity of LNG production, the high level of foreign ownership of the LNG industry and, in the near term, the use of deductions on taxation payments."
Finally, to finish up, there are some very scary reports coming out of California, now entering their 4th year of extreme drought, California in one year will be out of water...
Rather than British Columbia spoiling trillions of gallons of fresh drinking water, turning it into chemical laced fraccing water, pumping the chemical laced water into the ground, despoiling vast tracts of Canadian land...
I would rather see this water piped to California where it can be used to grow vast amounts of food, refresh their tap water, restore their shrinking underground water flows, let California grow food for the world..
No worries about pipeline explosions, no need for the people to worry about water pipelines bursting..
I`m of the belief that British Columbia should abandon their at-all-cost drive to promote a welfare laden LNG industry and come to their senses...Let`s export the water that was to be used for fraccing and send it to California, that cause would be noble, growing needed food, environmental health and moving priorities in the right direction.
Imagine that, British Columbia could do our southern neighbour a massive favour, we could help grow the world`s food and even make some money on it..
California needs the water to preserve food growing lands....British Columbia wants to spend $14 billion dollars on Site C dam to provide free power for a low employment welfare industry known as LNG export, wants to waste trillions of gallons of water, wants to ruin Canada`s most northern temperate food growing area, the peace river valley...
Vanishing snowpacks, global climate change, water shortages, droughts, ...LNG will only make matters worse and make us no money..
How about some 21st century thinking, .....Using water wisely, growing food for the world, creating jobs, helping out our neighbours and even making some money while doing it...
Written by Grant G
The Straight Goods
Cheers Eyes Wide Open