China's Insurance Policy Against High-Priced LNG, COAL= Death of British Columbia's LNG Super-Power Fantasy!

Written by Grant G

Well well well...more bad news on the British Columbia LNG front....Shell Canada, which possessed a Federal environmental certificate, a 40 year export license, all the B.C. Oil and Gas Commission permits, a deal with First Nations has postponed their proposed LNG project until mid 2020s, or..never!

 http://www.theglobeandmail.com/news/british-columbia/shell-backed-lng-canada-delays-plans-for-terminal-on-bc-coast/article30867006/

What a shocker eh, who knew?..actually, every reader and contributor to this site knew...Written August 21st/2015...

British Columbia LNG Industry, The Last Gas(P)....A Straight Goods Special

http://powellriverpersuader.blogspot.ca/2015/08/british-columbia-and-lngs-last-gaspa.html

There are those who say that the Petronas proposal..PNW LNG in Prince Rupert is different..people like BC Liberal spin doctor Tom Cassada(Twitter @lotuslander1000)...He claims PNW LNG is different because the consortium are offtakers of the gas...in other words, partners, equity partners don't care what the price is...that according to Tom Cassada..

Shell Canada had as partners..PetroChina and Kogas..(China and Japan)..and they were offtakers of Shell's gas too..

What some people can't digest, and it is a very simple concept...Why spend $billions to ensure $10 dollar LNG when you can lock in longterm LNG buys for $4 to $5 dollars per MM BTU's...That way these companies keep their cash, and get cheaper LNG...

Funny stuff indeed...The latest announcement from Shell Canada LNG..their Christy Clark ball-busting announcement seems to be completely ignored by B.C. media..Global..nothing, Vancouver Sun?..A Vaughn Palmer article containing only Government quotes(lazy)...The Province newspaper, crickets..

I have been busy leaving Postmedia LNG bread crumbs, real easy to follow..bread crumbs ignored, I drew them a road map, put up flashing LNG lights and still Postmedia remains deaf, dumb and blind..

I wonder why?..Could it be that partnership CAPP has with Postmedia is the reason why they protect Corporate owned Christy Clark, ...in other words ..mutual masturbation?.."See no evil, hear no evil speak no evil.."

Postmedia raggedy newsprint...corporate propaganda...Christy Clark claims, as does Gordon Wilson that "British Columbia has a moral obligation to develop LNG"...because Chinese people are dying from air pollution, pollution from coal...Christy Clark has made the inane claim that BC LNG will clean up China's air....Postmedia's Michael Smyth and others have echoed Clark's inane blather..

China, hmm....China is building 50 nuclear plants, China has the most renewable solar and wind power, it's growing leaps and bounds...China is also building more coal-fired power plants ..and when I say more..a lot more..

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If China Is So Committed To Renewable Energy, Why Are So Many New Coal Plants Being Built?

Responding to the air pollution crisis, China’s central government has made some monumental strides. It is estimated that by 2020, over 15 percent of China’s energy capacity will come from non-fossil fuel sources, and the country is the clear global leader when it comes to renewable energy.

However, the most coal-fired energy capacity in the world is also in China.


Even as China adds mountains of renewable energy capacity and develops progressive government policies to improve air quality, the old incumbent coal is still maintaining its leading position — and its looking to do so for a long time yet.

China’s National Action Plan for Air Pollution Prevention and Control’s mid-term review, which was released on July 5th, shows that the eight provinces which make up their ‘key regions,’ added on a massive 50.8 GW of new coal-fired energy capacity between the years of 2013-15. For scale, the country’s total installed energy capacity in 1980 was 66 GW. On top of this, the report showed that 42 GW of additional coal-fired capacity is currently under construction, with 11 GW more being approved just last year. Meanwhile, just 10.8 GW of coal-fired capacity in these provinces was taken offline during this same period. Considering that each coal-fired power plant has a lifetime of thirty to fifty years, it seems as if China has hedged its biggest energy bet on coal for the foreseeable future.



http://www.forbes.com/sites/wadeshepard/2016/07/08/if-china-is-so-committed-to-renewable-energy-why-are-so-many-new-coal-plants-being-built/#5e5110f265f7


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So why, why hasn't Postmedia and our legislative scribes blasted Christy Clark on the coal issue..could it be that B.C. wants to export vast volumes of coal too..exactly, the corporate angle rears it's head again, resulting in a B.C. domestic mainstream media that for all intents and purposes are utterly useless!..

Time and time again, to get a detailed explanation as to what is really going on...one must get the information from bloggers and alternative news sources..

So what the hell is China up to....

Well..here we go, China, with China over the last 15 years...the only number that mattered is GDP..Gross Domestic product/production..growing the economy regardless of the real cost..ghost cities abound..

China has right now, redundant power generation..China has many provinces, every local bigwig had orders to build infrastructure, whether it is needed or not...Building coal-fired powerplants employed Chinese workers, added to China's GDP...and more...So why would China build 50 nuclear plants, more renewable power than any other country, plus build not only more new coal-fired power plants, build more coal plants when the power grid already has too many power generators..redundant power generation..why?

More from that Forbes article....

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“New power plants certainly have much more aggressive emission control technologies than older plants, although many older plants are being fitted with these control technologies as well,” said Lauri Myllyvirta, a researcher at Greenpeace. “China has managed to reduce SO2 and NOx emissions from the power sector very rapidly in the past few years, above all due to retrofitting and due to stagnating power generation from coal, which has allowed emission controls to catch up. Where the logic falls apart is that very little capacity is being retired.”

According to Myllyvirta, there are some very clear drivers behind China’s local governments’ hesitancy to sever ties from coal.

1) Coal power is an easy way to generate economic activity at a time of reduced growth, not only via the construction of coal plants but through supporting local miners, who are struggling;

2) The profit margins for coal-fired power plants are currently over-inflated, as the cost for coal is market driven, and has dropped significantly, but cost of electricity, which is government regulated, has remained unchanged;

3) Expectations of future energy demand have not yet been adjusted to take into account the vast amount of renewable energy coming online and slowing economic growth.

So while the contradiction of attempting to reduce carbon emissions on one hand while increasing coal-fired energy capacity on the other can be contextualized, it cannot be completely explained away. Increasing coal energy capacity so dramatically at the height of a national air-quality crisis mitigates some of the gains made in renewable energy.

However, just because China has X-amount of new coal-fired energy capacity doesn’t necessarily mean that all of this capacity is being utilized — not at all. By the numbers, China has upwards of 200 GW of redundant coal-fired power capacity and, ultimately, has little use for many of the new coal plants that are currently being built.

http://www.forbes.com/sites/wadeshepard/2016/07/08/if-china-is-so-committed-to-renewable-energy-why-are-so-many-new-coal-plants-being-built/2/#4bf3ec5d7730


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So what the heck is China up to?....Read it again, think about it...China is building vast amounts of renewable power..China is building GHG free nuclear power..and even more redundant coal-fired power plants..why..

Look to Japan for that answer..Japan relied on mainly one power source..NUCLEAR POWER...And when the tsunami wiped out Fukushima nuclear plant, when panic beset the Japanese public the Japanese Government as a precaution shuttered all Japan's nuclear power plants....

What happened next..That's the answer to why China is building all forms of power generation...

At Japan's time of need, desperate for power, nuclear plants shuttered and LNG imports ramped up to pick up the slack..How did the world's big energy companies react...They grabbed Japan by the balls and squeezed and squeezed and brought the Asian country to their knees..another word for it..blackmail, usury, almost like war-time profiteering..

Does China want to, and intend to use some LNG..indeed they do...But what China now possesses..China possesses an insurance policy against the world's big energy companies, if LNG gets too high-priced..China can say..get lost, we'll use coal, thus China can now control the price of LNG...

China will never put itself in a position of relying on big energy to power their country...China has excess redundant, brand new coal-fired power plants...

And it is this exact scenario that has spelled the death of B.C.'s LNG fantasy...

Remember what Christy Clark said about Japan and Japan's LNG need...I do..Christy Clark told the Japanese people and Asia that British Columbia was going to charge 5 and 6 times the North American natural gas rate(Henry Hub) to Japan and Christy Clark said more...Clark said British Columbia was going to become debt free, become filthy rich, the land of no sales tax, employ 100,000 s of thousand in the LNG industry...All the wealth to be shaken out of our Asian neighbour's pockets..

You do have a big-mouth Christy Clark.. unfortunately the only thing that comes out of your mouth is bafflegab, also known as word salad..



China does things different and they don't take too kindly to those countries that use energy blackmail against energy hungry Asia...

Thus...British Columbia's LNG fantasy is over, in fact, after the already under construction LNG terminals around the world come online.. I don't believe there will ever be a new-sudden need to build massive LNG terminals again, with renewables tumbling in price, with information on methane leakage finding it's way to the public, the enormous environmental footprint LNG leaves..

BC Liberals and Postmedia will attempt to ride the lame sparkle pony right up to election 2017...

Lastly.. look for a possible snap election call this Fall(before the shit hits the fan)..

As for that lame sparkle pony, it has a June 2017 reservation at the glue factory!

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The Straight Goods

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