The Shredding of Rich Coleman's Latest LNG Bullshit Spinfest-A Straight Goods Special

Written by Grant G

There has been some interesting developments on the British Columbia LNG front.....and the developments are bad news for BC's LNG superpower aspirations...

As reported here in previous posts, Japan has officially challenged the legality of "take or pay LNG contracts"...Japan's LNG use is on the decline as a result of several things..number 1..Japan's population is falling by millions...Japan utilities have lost nearly 1 million customers..

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Japan's population is shrinking: What does it mean for the economy?

Prime Minister Shinzo Abe has made tackling the problem of Japan’s shrinking population a priority. But experts say averting the looming demographic crisis is virtually impossible.

The population is forecast to fall to about 83 million by 2100, with 35% of Japanese aged over 65, according to the United Nations. Even if the birth rate rose from 1.4 children per woman to Abe’s target of 1.8 and Japan accepted more immigrants, it would be difficult to prevent a fall below 100 million.

https://www.weforum.org/agenda/2016/02/japans-population-is-shrinking-what-does-it-mean-for-the-economy/

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Japan is also suffering from almost 0 economic growth, and....Japan is restarting their nuclear grid...this will result in 

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Seven Japanese nuclear power reactors are likely to be in operation by the end of next March and 12 more one year later, according to an estimate by the Institute of Energy Economics, Japan (IEEJ). Judicial rulings and local consents will influence the rate of restart, it notes.

Under this scenario, compared with FY2010, total spending on fossil fuel imports in FY2017 decreases by JPY4.7 trillion ($45 billion)

http://www.world-nuclear-news.org/NP-Japanese-institute-sees-19-reactor-restarts-by-March-2018-2807164.html

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"Take or pay" longterm LNG contracts of the past are being ripped, LNG exporters wrote in contracts that Japan utilities could not resell their contracted LNG cargoes, that may be well and fine for LNG exporters, but Japan doesn't need the LNG and storage of the high pressure liquid gas is very expensive...Japan is now legally challenging the legality of those contract provisions...No legal body is going to force Japan or prevent Japan from reselling that LNG...

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Japan’s trade commission starts LNG destination clauses inquiry

The regulator intends to review whether the destination clauses limit competition, which could lead to a number of contracts, worth hundreds of billions of dollars, being renegotiated.

The world’s largest LNG importer, Japan, together with other Asian buyers, believes the clauses restrict the trading of LNG in cases when it would be better to sell to other markets.

The companies that fail to comply with orders that have reportedly been issued late last month could face penalties. The deadline for submitting the requested information is the end of November, the report says.

Earlier in May,  Japan’s Ministry of Economy, Trade and Industry (METI) recommended the supply contracts to be reworked in order to allow the buyers to resell the imported LNG or negotiate better prices.

http://www.lngworldnews.com/report-japans-trade-commission-starts-lng-destination-clauses-inquiry/

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Japan will soon be selling their excess contracted LNG to other nations, that will mean LNG export volumes to other nations from LNG exporters will decline, and drive down price....

So, for all intents and purposes, Japan as a major British Columbia LNG buyer isn't in the cards...

Fact...

The British Columbia LNG and natural gas industry is literally on life-support...Drilling in BC's northeast has never been lower..not since 1993 have so few gas wells been drilled..

http://vancouversun.com/business/energy/gas-drilling-drops-to-23-year-low-in-b-c-s-resource-rich-northeast

The news is so bad that Rich Coleman, British Columbia's Minister of natural gas has created another fake B.C. LNG headline......

BC Liberals are banking on a promise of unlimited LNG riches accruing(in the future) to carry them through election 2017...yet nothing could be further from the truth....

Catch this headline, from Bloomberg....

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Canada Sees Petronas’ $27 Billion LNG Decision by April(2017)

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Quite the headline...indeed...by the way, April 2017 just happens to be one month before BC's provincial election...Could the story be true, no, absolutely false...

Spencer Sproule and Rich Coleman have faked LNG press releases before, many times, this Bloomberg article on BC's LNG future was completely manufactured by Rich Coleman, the article has one source, no confirmation from anybody, including Petronas and Petronas' partners...one source, ...a one Rich Coleman..

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http://www.bloomberg.com/news/articles/2016-11-16/canada-sees-petronas-taking-27-billion-lng-decision-by-april

Petroliam Nasional Bhd. will be ready to decide whether to proceed with a propose d $27 billion liquefied natural gas plant on Canada’s Pacific Coast by April(2017), according to Rich Coleman, British Columbia’s minister of natural gas development.

The state-owned Malaysian energy company, which won conditional Canadian government approval in September after more than three years of regulatory review, is in the process of reassessing the project’s costs, including those of steel, pipes and other inputs, he said.

“They need to go out and re-price the project,” Coleman said in an interview in Vancouver. “They hope to have that done in three to six months. Once they’ve done that, they’ll go back to the partners and decide whether to make a final investment decision.”

 British Columbia is positioning itself as a gateway for Asian exports with its vast reserves and is among North America’s closest ports to the region. Petronas is reviewing the project and working to lower capital costs, it said in an e-mailed response to questions.

“Before the project can proceed to a positive final investment decision, we need to ensure the project is competitive with similar projects around the world,” the Malaysian explorer said.

 Petronas is the majority owner of the Pacific Northwest LNG project, which could produce as much as 19.2 million tons a year of the fuel, or about 8 percent of last year’s global trade. Its partners are China Petrochemical Corp., Japan Petroleum Exploration Co., Indian Oil Corp. and Brunei National Petroleum Co.

 An Indian Oil spokesman was unable to comment immediately, while a Beijing-based spokesman for Sinopec said the company has no comment on the matter. Petroleum Brunei could not be reached for comment.

Coleman, who met with Petronas executives last month in Kuala Lumpur, said those partners remain on board as buyers. “There was no indication that any of the partners aren’t still in,” he said. “They have a really strong focus on getting it to be financially viable.”

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Did you read that, ....There are no sources but Rich Coleman...Petronas' equity partners refused public comment, not one person besides Rich Coleman is cited in that article, the entire spiel by Rich Coleman is made up out of whole cloth....The only source is  The Malaysian Explorer..who the hell is the Malaysian Explorer..

http://www.malaysiaexplorer.net/

The Malaysian Explorer is a travel guide?....

http://malaysian-explorer.blogspot.ca/

A travel guide blog...

https://www.facebook.com/malaysianexplorersclub/

Rich Coleman is now citing a travel/and discover neat things about Malaysia blog...

Is that the best you can come up with...Who the hell is the Malaysian Explorer...Sheesh..

And the bad news for British Columbia LNG keeps on coming...believe me folks, you can make this stuff up...

Donald Trump wants to unleash American Energy, cut regulations, open up federal lands and frac, drill and burn baby...

There is a world glut of both oil and gas....and here is where it gets bizarre...

Donald Trump wants to be buddy buddy with Russia and Putin...Putin was the first world leader to officially phone and congratulate Donald Trump on his presidential election victory...

Donald Trump also vowed during his election run-up to reinstate the sanctions against energy powerhouse(to be) Iran.....

Well, ...Donald Trump has officially been outsmarted and goosed by Russia and Russia's big energy companies, ....and this will also make British Columbia look like a mere natural gas reserve pauper...

From Wikipedia...

2

Iran (see: Natural gas reserves in Iran)

33,600,000,000,000

12 June 2013 est.[

21

Canada (see: Natural gas in Canada)

1,754,000,000,000

1 January 2010 est.

What might I be talking about...?

Donald Trump and The Inescapable Box he created...

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Envoy: Giant Russian Energy Firms to Visit Iran for Oil Contracts

A 28-strong delegation of managers of Russian energy firms, including Gazprom, Gazprom Neft, Rosneft, Lukoil, Tatneft, Transgaz, Zarubezhneft, etc., are due to visit Tehran on Thursday to participate in a workshop on new oil contracts," Sanayee said on Wednesday.

Noting that Iran has already signed Memoranda of Understanding (MoUs) with three Russian companies, he said, "Other giant Russian oil and gas firms are also in talks to invest in Iran's oil and gas fields and endorse relevant MoUs."

Deputy Minister of Petroleum for International Affairs and Trading Amir-Hossein Zamaninia announced last week that a delegation representing Russian companies will visit Iran soon to receive the first hand account of oil contracts

The NIOC had on July 12 and October 8 this year signed two MoUs to entrust studies on two sustainable West and Aban fields as well as Dehloran oilfield to Zarubezhneft and Tatneft respectively.

The Deputy Minister of Petroleum said Gazprom is ready for development of a field in Persian Gulf and contribute to the Iranian LNG project.

http://energy.einnews.com/article/354191972/4u1mKdPRaRjamiN_?lcf=MP1UERZM82OjGa1-zSFQMw%3D%3D

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Iran's gas reserves are conventional gas reserves, no need to frac, ..meaning cheaper to produce and...Iran has gobs of oil and natural gas..

Iran is also in talks with Indonesia and Malaysia on investing in and developing Iran's massive energy supplies...Iran is aching to get product to market....British Columbia can't compete with Iran, Qatar or Russia on price...

Way to go Donald Trump....you just got trumped by Russia...How far will your new alliance with Putin and Russia go if you try to place energy export and economic sanctions on Iran...

As for you Rich Coleman...you really need to step up your game...

The Straight Goods just shredded your manufactured gobbily goop self manufactured LNG spinfest article before the ink even dried...

And of course, Petronas has not released or issued a single official press release confirming the gibberish Rich Coleman is spewing..

http://www.petronas.com.my/media-relations/media-releases/Pages/2016.aspx

The Straight Goods

Cheers Eyes Wide Open