Petronas Huffs and Puffs Bullshit, Idle Threats from an LNG Company that Was Walking Away from British Columbia Anyway

Assembled by Grant G

Well, the Petronas news today was no surprise to The Straight Goods, in fact it was expected...

Petronas has issued a phony ultimatum to Justin Trudeau..

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CALGARY • Malaysia’s Petronas is frustrated that Prime Minister Justin Trudeau’s climate-change priorities are introducing new uncertainty for its proposed $36 billion Pacific NorthWest LNG project


Pacific NorthWest LNG project in northern British Columbia and has threatened to walk away if it doesn’t get federal approval by March 31, according to a source close to the project.


the new federal Liberal government is toughening up environmental reviews of major energy projects to regain “public trust” and as it strives to meet international commitments to reduce greenhouse gas emissions.......

It said in January they would be subject to additional assessment on “direct and upstream greenhouse gas emissions.” A spokeswoman for CEAA did not respond to a request for information about how the new requirements will impact Pacific NorthWest LNG.....

After spending an estimated $12 billion to get the project to this stage, and having suffered multiple delays and setbacks, including aboriginal and environmental movement opposition, Petronas has conveyed to federal cabinet ministers it won’t accept additional hurdles.....

“They have given Trudeau to March 31 to either approve it as it stands now or they are going to leave,” the source told the Financial Post. “They started off with the Conservatives, and the (environmental) standards are very high.

http://business.financialpost.com/news/energy/malaysias-petronas-threatening-to-abandon-lng-project-over-new-climate-change-rules?__lsa=1c6e-6f50
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Well well well, let's cut through the bullshit first....Petronas claims it has spent $12 billion dollars so far on PNW LNG....Where, who, on what....Here is where $6 billion plus was spent..

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Petronas-Progress Energy takeover completed after Ottawa's approval

CALGARY — Malaysian state-owned energy firm Petronas has completed its $6-billion takeover of Progress Energy Resources Corp.
The deal won Ottawa’s approval on Friday after having initially been rejected as not being of “net benefit” to Canada.
Progress’ shares and debentures are expected to be delisted from the Toronto Stock Exchange on Monday.

http://business.financialpost.com/news/energy/petronas-completes-6-billion-progress-energy-acquisition-after-deal-gets-ottawas-approval?__lsa=1c6e-6f50

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You see folks, here this $6 billion dollar takeover of Progress Energy of Alberta was deemed as NOT BEING A NET BENEFIT TO CANADA....That investment added nothing to British Columbia, Progress energy has operations not just in B.C. but  in fact has most of their assets are in the USA shale plays..Petronas bought a company, that my friends is not investing in B.C. ...That is merely buying an asset that can be easily sold again...Where was/is the remaining dollars Petronas claims to have spent gone?....

Petronas/Progress energy has been drilling in BC's Northeast....Because...... Progress energy drilled and fracked.....The drilled and fracked gas goes into the British Columbia natural gas supply where it is sold into the B.C. natural gas market and the USA NG market...In other words it's business as usual for Progress energy.....

In other words Petronas hasn't spent anywhere near $12 billion to develop PNW LNG...It's all bullshit spin!

Why can't the mainstream media suss out the bullshit...the above stories are from The Financial Post...A business newspaper that can't suss out the simplest details...In fact ...This article in the FP today..

http://business.financialpost.com/news/energy/malaysias-petronas-threatening-to-abandon-lng-project-over-new-climate-change-rules?__lsa=1c6e-6f50

They are calling the PNW LNG project "a $36 billion dollar project" and that number is so made up out of whole cloth...

Because we know, Petronas knows, the BC Liberals know, the Financial Post knows that Petronas's proposed PNW LNG project estimated REAL COST is a mere $11 billion dollars and $8 billion plus of that cost will be spent in South Korea..

How much proof must we put out there.

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Petronas wants engineering work for B.C. LNG venture to be shifted offshore

BRENT JANG

VANCOUVER — The Globe and Mail

Published Thursday, Dec. 04 2014, 5:49 PM EST
Last updated Thursday, Dec. 04 2014, 6:11 PM EST

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.

 http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/petronas-pushes-offshore-work-for-british-columbia-lng-venture/article21960284/

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So, Petronas is lying again and The Financial Post is repeating those lies with the ease of a used car salesman..(Hey Vaughn Palmer, you have some competition in the repeating lies from the liars department)

Need more, let's unravel the rest of the bullshit from Petronas and the Financial Post..

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Not one of the two-dozen groups that proposed LNG export projects has gone ahead due to regulatory delays, rising competition from United States LNG exporters, plummeting prices, and aboriginal and environmental group opposition.

The AltaGas-led group proposing the Douglas Channel LNG project stopped development last month and Royal Dutch Shell has delayed its final investment decision on its proposed terminal near Kitimat until the end of this year.


  http://business.financialpost.com/news/energy/malaysias-petronas-threatening-to-abandon-lng-project-over-new-climate-change-rules?__lsa=1c6e-6f50

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Let's be perfectly clear....Altagas had all the required permits, they had First Nations support from the Haisla, the Federal Government waived the import taxes on their foreign built floating liquefaction facility, Altagas had a export license from the NEB and there was NO Federal EA required for Altagas's little floating facility...what Altagas didn't have was customers....Here is the proof..

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AltaGas calls halt to its LNG project in Kitimat

Lead partner in consortium cites poor market conditions

By Derrick Penner, Vancouver Sun February 25, 2016

Read more: http://www.vancouversun.com/altagas+calls+halt+project+kitimat/11743911/story.html#ixzz42GbUyWEG

The consortium’s lead partner, Calgary-headquartered AltaGas Ltd., made the announcement that it was halting development on the $600-million proposal at Kitimat “due to adverse economic conditions and worsening global energy price levels.”

“It’s really the manifestation of market conditions,” said AltaGas executive vice-president John Lowe. “We could not secure a customer at any price that would cover our costs.”

The news came as a blow to the Haisla First Nation in the region, which, due to the cancellation and delays of other projects, is now watching a “mini-boom” spurred in part by spending on LNG development work go bust.

Haisla Chief Councillor Ellis Ross said he received the news by way of a courtesy call from AltaGas on Wednesday evening, which coincided with a council meeting.

Read more: http://www.vancouversun.com/altagas+calls+halt+project+kitimat/11743911/story.html#ixzz42GZibNC


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And Shell Canada....They had a 40 year export license, they had all the required permits from the BC Oil n Gas commission and they too had an environmental greenlight from the Federal Government...And Shell Canada LNG also had First Nation support, what Shell Canada didn't have was paying customers at a price-point that made their British Columbia proposal economical..

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http://www.lngworldshipping.com/news/view,shell-halts-lng-canada-fid_41660.html

Shell has put on hold the final investment decision (FID) for its British Columbia start-up LNG Canada, blaming the slump in oil and gas prices for weakening the project’s prospective returns.
The energy giant announced the decision today (4 February), having filed dismal full-year results, including a US$6.5 billion loss. The news comes less than a month after LNG Canada secured a facility permit for its planned terminal in Kitimat, becoming the first proposed British Columbia export project to pass that particular milestone.

Today’s news comes as a major setback for Canada’s LNG-export ambitions. Experts ranked LNG Canada among the five strongest prospects out of some 20 proposed export projects in British Columbia. Partners Shell, Mitsubishi, Kogas and PetroChina planned to export 24 million tonnes a year (mta), starting with two 6.5 mta trains and adding two more.

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Need more proof Petronas and The Financial Post is full of shit..Shell Canada had everything, First Nation support, an agreement in place, Shell Canada had/has an Environmental approval, Shell Canada had all the BC Oil n Gas approvals, a 40 year export license from the NEB....Shell Canada had no LNG buyers...Thus they cancelled their project..

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The BC Oil & Gas Commission (BCOGC) on Tuesday authorized, subject to local safety and environmental conditions, a Kitimat processing and tanker-loading complex for up to 3.7 Bcf/d planned by the group of Shell (50%), PetroChina Corp. (20%), Korea Gas Corp. (15%) and Mitsubishi Corp. (15%) (see Daily GPI, July 6, 2015).


The approval is the first of many in the works at the BCOGC, which last year delegated exclusive power to make terminal site construction decisions on the long lineup of BC overseas gas export projects to the commission.

LNG Canada previously received federal and provincial environmental approval, hired a construction general contractor, made a power supply deal with provincial government-owned BC Hydro, and lined up benefit agreements with the Kitimat native community.

The LNG Canada group has been working on its export scheme for about five years, and Shell had said it would make a final investment decision about the project in 2016 (see Daily GPI, Nov. 10, 2014).


In the biggest part of the preparations, Shell has emerged as a top producer in the Montney formation, tapping the shale-like and liquids-rich “tight gas” formation straddling northern BC and Alberta for about 410 MMcf/d with horizontal drilling and hydraulic fracturing techniques (see Shale Daily, Jan. 4).


The gas currently goes to traditional markets in Canada and the United States, including northern Alberta thermal oilsands extraction where Shell is senior partner in one of the biggest bitumen mining and synthetic crude upgrading complexes.


In announcing the BCOGC permit, Shell indicated full-scale construction remains a considerable time away and is not a sure bet.

The company called the ruling “an important step forward” but added that “the project must ensure it is economically viable and meets several other significant milestones including finalizing engineering and cost estimates, supply of labor, and achieving other critical regulatory approvals before making a final investment decision.”


Shell has been pulling back across North America and in December sharply reduced its development plans for 2016 (see Daily GPI, Dec. 23, 2015).

http://www.naturalgasintel.com/articles/104912-lng-canada-nabs-construction-permit-important-step-forward-says-shell#.Vo8Pxzqy2Sk.twitter

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All the money Shell Canada is spending on site prep work and logistics is pocket change pennies to that behemoth corporation, they can write it off as a business loss..

Shell Canada can also just walk away and not lose a minute`s sleep over it...

The window of opportunity has closed....Maybe a new round of terminals will be built in the next decade...and or maybe the sheep in the world will wake up to the fact that LNG is the dirtiest fuel, not a bridge fuel and it`s money wasted when countries can spend less money in the longterm by building green renewable energy..

http://powellriverpersuader.blogspot.ca/2016/02/british-columbia-lng-breaking-shell.html

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Petronas is pulling a fast one, the ultimatum/threat against Justin Trudeau is mere grandstanding...Petronas is walking away from British Columbia PERIOD....Petronas is merely fanning the flames by falsely blaming Justin Trudeau's carbon tax measures as the cause.....Newsflash..There are no NEW FEDERAL GREENHOUSE GAS RULES..

Nice try Petronas...We knew, we at The Straight Goods reported last year that you were bailing on B.C....And we know it's true because..

The BC Liberals put general revenue monies into the fantasy LNG prosperity fund and..The BC Liberals are spending $millions of taxpayer dollars advertising ...advertising Money for children born..advertising Money for High-tech start-ups..advertising Money for computer tech jobs...The BC Liberals are not advertising any LNG jobs...Hence a BC Government LNG website that is a mere a blank screen..!

Lastly...Petronas's PNW LNG project is a carbon bomb...Forget about any new non-existent federal carbon tax laws or rules...

British Columbia has a GHG law, we are supposed to have 33% fewer greenhouse gas emissions by 2020 over 2009 levels...Either way, Petronas's proposal would increase BC's emissions and total greenhouse gas emissions by 40%..one project, 40% provincial increase in GHG's with one LNG project!..

http://www.policynote.ca/petronas-pacific-northwest-lng-profile-of-a-carbon-bomb/

Adios Petronas... Don't let the door hit you on the way out!

The Straight Goods

Cheers Eyes Wide Open