Why is Rich Coleman planning to “restart our discussions in and around our project development agreement.”

What am I talking about?

Rich Coleman in an exclusive with BIV(Business in Vancouver Magazine) on September 21st/2016 said this, and I quote..

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https://www.biv.com/article/2016/9/exclusive-coleman-reveals-housing-lng-and-campaign/

Exclusive: Coleman reveals housing, LNG and campaign secrets to party faithful

Coleman, who is also the Minister of Natural Gas Development, said he expects a final investment decision on one of three major liquefied natural gas export proposals before the May 9, 2017 provincial election.

The federal government’s environmental review decision on Pacific NorthWest LNG near Prince Rupert is expected by October 2, but Coleman indicated economic uncertainty remains around the project, which is backed by Malaysian state-owned Petronas.

He said it is “quite likely” that he would meet in October with the president of Petronas in Malaysia and the presidents of the four minority partners to “restart our discussions in and around our project development agreement.”

“We really need to figure out the numbers,” he said. “The numbers have really got to be tightened down. Because the price of gas in Asia right now is so cheap, because of the price of oil. Just about nobody is globally competitive on a long-term contract they signed before the market crash.

“I know the number they have to get to in order to make it financially viable, I think they’re about 50 cents to a dollar away from that, but it’s a lot better than it was six months ago.”

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Ok, let's get started......PDA, a Project Development Agreement....THE PDA in question was already passed in the BC Legislature..

Remember this...What Christy Clark promised during the 2013  election...The NDP voted in favour of the initial BC Liberal LNG framework...Then the big energy companies squeaked and ....The BC Liberals brought in a new PDA agreement and rammed it through the house....slashed the tax rate, me too clauses, any carbon taxes would be paid by the province, not Petronas...in other words the BC Liberals caved ..That caving is now called an historic sellout..

http://www.timescolonist.com/news/local/lng-deal-not-good-for-b-c-ndp-leader-says-as-legislation-introduced-1.1999376

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And this..

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Matt Toner: B.C.'s Petronas LNG deal is bad economic policy and profoundly undemocratic

http://www.straight.com/news/488251/matt-toner-bcs-petronas-lng-deal-bad-economic-policy-and-profoundly-undemocratic

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John Horgan and the NDP need to ask some serious questions...What does Rich Coleman mean when he says this..

Coleman said it is “quite likely” that he would meet in October with the president of Petronas in Malaysia and the presidents of the four minority partners to "restart our discussions in and around our project development agreement.”

And what does Rich Coleman mean when he says this...

“I know the number they have to get to in order to make it financially viable, I think they’re about 50 cents to a dollar away from that, but it’s a lot better than it was six months ago.”

I'll tell you exactly what it means....That historic sellout PDA with Petronas is being renegotiated downward, Rich Coleman isn't talking about LNG buying customers being within 50 cents to a $1 dollars, Rich Coleman is talking about slashing what BC would receive even more than they already slashed..

That would require new legislation, a brand new PDA to be rammed through the house...

I'll have more to say on this shortly..However, I watched and listened to the presser live....and guess what Fisheries Minister Dominic LeBlanc said...

  
...it was about the jobs....(Paraphrasing here)Dominic Leblanc said...

Petronas would create 300 direct jobs and 360 spinoff jobs and..about 4000 construction workers at the peak...

But that doesn't jive with what Rich Coleman said ....that doesn't jive or come anywhere near the employment numbers Christy Clark has touted over the last 4 years...Here is what Rich Coleman said in Victoria on..

February 22/2014 Rich Coleman made this outrageous statement while giving a 30 minute speech on LNG..

Read it carefully..

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I get a kick out of some of the other folks out there saying: 'You're behind schedule.' "No we're not. We're actually right on the time frame that I established."

One thing that works in the government's favour is the scale of the enterprise. The values are so vast that even delivering a fraction of the potential could count as a win.

Coleman said: "They say: 'They can't all go ahead.' "I say: 'OK. Let's have three. LNG plants' That's $100 billion. That's 100,000 jobs."
It's that comfort level that's giving him the kicks, and the amusement. snip..


http://www.canada.com/victoriatimescolonist/news/comment/story.html?id=9cc9a3fd-2f0b-4b77-b2e1-40ddae5a1039&k=33176

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Well well well....So federal minister Dominic Leblanc says after construction...330 direct jobs and 360 spinoff jobs....Shouldn't there be 33,000 jobs with this project?....Rich Coleman said that three LNG plants is 100,000 jobs..

Another Rich Coleman lie....And here is another Rich Coleman lie..

Coleman said it is “quite likely” that he would meet in October with the president of Petronas in Malaysia and the presidents of the four minority partners to “restart our discussions in and around our project development agreement.”

How do you restart discussions around a PDA..a PDA enshrined in legislation....a PDA so bile the BC NDP voted against it...

In other words...the way I read it....Petronas is not going forward with a FID at all...not a chance, and..according to Rich Coleman...

Petronas may build.....Petronas may go forward but only If the BC Government offers up a new PDA where the province takes an even bigger hit..

Someone needs to ask Rich Coleman what the hell is going on, ask him how you restart talks on a PDA enshrined by legislation....ask Rich Coleman when will the BC Liberal sellout government bring forth a new PDA?..I won't hold my breath waiting for Keith Baldrey or Michael Smyth to ask the tough questions..

Lastly....I said it many many times..."The only way Petronas will build an LNG plant is if we pay them to take the gas...

Need a little more...from an earlier Straight Goods Post..

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http://powellriverpersuader.blogspot.ca/2016/07/christy-clarks-2017-election-gambitlng.html

The head of an advocacy group for B.C.'s oil and gas service sector says it could be almost another year before Petronas makes an investment decision on its Pacific NorthWest LNG facility.

At the annual general meeting of Energy Services BC late last month, President Dave Turchanski told members that, according to a source within the company, the Malaysian oil and gas giant likely won't make a final investment decision on Pacific NorthWest until June 2017.

The facility, which would be built on Lelu Island near Prince Rupert, would process gas from Northeast B.C. for export to Asia. It is undergoing a review by the Canadian Environmental Assessment Agency, with a decision expected by mid-September.

"At the earliest is June of 2017, Petronas might come out with a final investment decision (FID)," Turchanski said in an interview. 

"If they come out with an FID, that doesn't mean they're going to go to work right away. They might delay it another year, they might delay it two years, they might delay it five years."

http://www.alaskahighwaynews.ca/wait-for-pnw-lng-investment-decision-could-drag-into-june-2017-1.2293709

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Anyway....even with that...My money says Petronas defers for years and years...probably forever..

The Straight Goods

Cheers Eyes Wide Open