Christy Clark's LNG Fantasy, The Day The Spin Cycle Went Out Of Balance

 

Today the Christy Clark led BC Liberal Party will present another delusional throne speech...

The Site C dam proposal will be front and center in the throne speech, false assumptions will made in trying to justify the $15 billion dollar project...$15 billion dollars BC Hydro will have to borrow to build the monstrosity..

Site C dam...Alberta will not buy that power...There is no transmission line even available, Christy Clark wants the federal Government to pay for the transmission line from Site C to Alberta...The feds won't pay for the line....Christy Clark's throne speech will also carry on with promoting her LNG delusions..

Shell Canada LNG will not be proceeding with their now-delayed terminal proposal...Petronas is set to cancel their project in early March/2016..

Christy Clark, despite balanced budget claims has racked up $30 billion dollars of public debt in her short reign as premier..

Unfortunately British Columbia's legislative reporters and scribes have failed in their role as journalists and public good guardians...These people, Tom Fletcher, Keith Baldrey, Vaughn Palmer and Michael Smyth have morphed into partisan BC Liberal spindoctors..

Anyway...This posting is short and simple...

Pakistan has just signed a longterm LNG buying contract with the world's largest LNG exporter Qatar..The price is so low that it completely shuts out Shell Canada and Petronas...Those companies can't frac the gas and deliver it to the westcoast for the "new normal LNG price"..

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Under the 15-year deal, Qatar will supply 3.5 million tonnes per annum of LNG to Pakistan, Reuters reported on Monday.


A report by Pakistan Today says that the country negotiated a “very attractive price” of $5.35/MMBtu as compared to $$6.56/MMBtu which was agreed in 2013, due to declining oil and gas prices.

Pakistan’s Economic Coordination Committee recently approved Pakistan State Oil’s 15-year LNG sale and purchase agreement with Qatargas.

On a proposal of Ministry of Petroleum & Natural Resources, the Committee “approved signing of the LNG sale purchase agreement (SPA) with Qatargas for a period of 15 years and authorized the PSO to execute the SPA under government to government arrangement after completing the due process,” ECC said.


It was reported in November last year that PSO agreed to import 1.5 million tonnes of LNG per year under the long-term deal from the world’s largest LNG producer.

Pakistan began importing LNG in March 2015 in order to replace conventional fuels to fire its power stations.

The country is importing chilled gas through Excelerate Energy’s 150,900 cbm FSRU Exquisite, which is chartered by Engro Elengy, located at the Port Qasim in Karachi.

The Port Qasim facility received 17 cargoes or one million tons of LNG by the end of December.

 http://www.lngworldnews.com/pakistan-qatar-to-ink-lng-deal/

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Does Christy Clark need more ammunition for her throne speech...?

India is demanding cheap LNG from Australia...this LNG is going to be used as back-up power for India's surging renewable energy industry..

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India and Australia on Monday formed a sub-group to prepare a roadmap that would look into ways in providing cheap LNG for power plants in the south Asian country. 

“India is willing to consider long-term fixed price contracts for the supply of gas which will enable power producer to enter into a power supply contract at an affordable price,”  India’s Power and Coal Minister Piyush Goyal said in a statement released by the Ministry of Petroleum and Natural Gas.

Goyal was addressing a roundtable in Brisbane, Australia on Monday on the business opportunities for LNG and coal bed methane. He further stated that opportunities to control the entire value chain right from gas production, liquefaction, shipping, re-gasification and power generation can be evaluated at the current “historic low prices of many of these activities“.


According to the Minister, India is running one of the world’s largest renewable energy programme which aims to increase the capacity 5 times to 175 GW over the next seven years.
“This will require gas based plants which can act as spinning reserve and supply power during deficit times of day (like evenings) when renewable energy production reduces while stabilizing the grid,” he said.

He added that since coal-based power is available in India at less than 5 cents per unit, the LNG providers should consider supplying gas to India at a price that is comparable.

 http://www.lngworldnews.com/india-wants-cheap-lng-from-australia/

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These new prices render British Columbia's LNG proposals uneconomical..money sinkholes...

Oh, and in case you fine folk missed the news from Queensland Australia...Their LNG industry is a complete and utter disaster...

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Queensland's collapsing LNG Industry




In all wars, there is collateral damage and, in this case, the damage from the oil price war has fallen on the LNG industry, particularly the Australian onshore gas industry in Queensland which has some of the highest production costs of gas on Earth.

Thus the big three companies operating in Queensland – Santos, Origin and QGC – are starting to discover just how bad a folly they have committed.

Gas in Queensland is all about exporting liquefied natural gas (LNG) to Asia, and to this end all three companies built mind-numbingly expensive LNG plants at Gladstone.
These three plants cost – figures vary, but at least - $60 billion to build and even now one can’t help wondering what on Earth they were thinking?

Of the big three in Queensland, QGC are best placed to survive. QGC is the onground manifestation of BG-Group, which is in turn contemplating a merger with Royal Dutch Shell. However I will refer to them as QGC for this Australian-based article.

QGC, through their parent, have staggering amounts of capital available to them, and so will not go bankrupt. However, their Queensland CSG-to-LNG business is the worst performing arm of their global business and so even they must be currently looking at the Queensland books and wondering how long they are prepared to run an underperforming asset.

Of the other two, we are already hearing that Origin – who feed their coal seam gas into the US$17.5 billion APLNG plant at Gladstone – are in all sorts of trouble. Moody’s Investor Service indicating that, already, they cannot service their monster debt on the plant.......

 ll  clarify those costs here:  The production costs of the gas Santos feed from the CSG fields in the western Darling Downs, around Roma, run at US$3.50 at the current exchange rate of 0.7, liquefaction and shipping fees, another US$3.50.
Total production costs therefore stand at US$7 even.

Santos produced 544,000 tonnes from one train at the GLNG plant in ten weeks of quarter four of 2015.They claim they will have train two operational in quarter two of 2016, and if that optimistic forecast comes true, and train two produces at a similar rate, then Santos will produce approx 3.8 million tonnes in 2016.

With the Goldman Sachs forecast price of the JKM at US$5.80/Gj, and therefore Santos’s projected price for the year at US$6.80/Gj, then Santos will lose US$0.20 on every gigajoule they produce.
That would leave a net loss of US$41 million for the 2016 year.

2016 is a startup year, so tonnes produced will run, as I say, around 3.8 million tonnes, however the nameplate capacity of GLNG is 7.8 million tonnes, so let’s examine that.
If, against all the history of engineering Santos miraculously double production for 2017 to 7.8 million tonnes, then that unfortunately for them coincides with the forecast price of Santos gas going down again, to US$5.91.

There are 54.5 gigajoules in a tonne by the way, so the total loss can be calculated by tonnes x 54.5 x margin, which for 2017 would show a loss on GLNG of US$463 million.

In 2018 the price descends again to US$5.49, what the Queensland LNG companies pray is the cellar, but there is no certainty on that I can assure you. This low price is also projected for 2019.
And thus Santos shows a loss, if in full nameplate production, in 2018 and in 2019 of US$641 million each of those years.

Leaving a simply staggering grand total of US$1.79 billion combined loss over four years.

 https://independentaustralia.net/business/business-display/queenslands-collapsing-lng-industry,8620



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I'm Looking forward to the B.C. Liberal Throne Speech..

 

Christy Clark's LNG fantasy is over, the new longterm prices being inked by Asian countries have made British Columbia LNG a stranded asset...It costs more to get it out of the ground than what it can be sold for..

Which makes B.C. LNG export economically not viable...In other words Shell Canada and Petronas will not proceed...And as for the small LNG proposals..well..

"A fool and their money soon part ways" 

The Straight Goods

Cheers Eyes Wide Open 

Site C Dam Not Required, Christy Clark's Justification for the Taxpayer Funded Project Falls by the Wayside

Site C Dam Not Required, British Columbia Could Save $15 Billion Dollars

 Written by Grant G

(this factual article was originally posted in January 2015)

 http://powellriverpersuader.blogspot.ca/2016/01/site-c-dam-not-required-british.html

Christy Clark and the BC Liberals are now saying $15 billion dollar public dollar/taxpayer funded Site C Dam project is not about LNG but about an opportunity to sell Alberta clean electricity...

 http://www.theglobeandmail.com/news/british-columbia/clark-urges-trudeau-to-support-bc-megaprojects-that-benefit-canada/article28631015/

That's absurd, Alberta and Alberta industry will not pay the price, Alberta is building natural gas power plants that will create more power than Site C dam.., take up almost no space and cost 1/10th of the price.....Christy Clark is,...is unfortunately economically challenged, perhaps Christy Clark needs another university or college course....
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An open letter to the premier's new advisor

 http://www.alaskahighwaynews.ca/opinion/letters/an-open-letter-to-the-premier-s-new-advisor-1.2166537

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An open letter to the premier's new advisor

I present you a Straight Goods Special......

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Site C Dam Not Required, British Columbia Could Save $15 Billion Dollars

Written by Grant G

In late December/2014....A couple of weeks after Christy Clark told Bloomberg in New York that British Columbia didn`t need Site C dam for the proposed LNG industry, Christy Clark also told Bloomberg the price of Site C was going up by potentially $billions of dollars, we are looking at $10 to $15 billion dollars to build Site C...Possibly $15 billion dollars for a very tiny bite of electric  power...Expensive power, power we don`t need for LNG...The one group that looked at Site C and BC Hydro`s power for the future projected growth model...They came to the conclusion the power was not required, the case not made..!

Meaning there is no need to spend $15 billion dollars we don`t have, no need to put BC Hydro over $20 billion dollars in debt($15 billion plus the $billions of debt hidden in BC Hydro`s deferral accounts),  BC Hydro would have as a crown corporation almost as much debt as British Columbia had when the BC Liberals came into power in 2001...Our provincial debt in 2001, including contractual debt, crown debt stood at that time about $28 billion dollars(now it`s almost $80 billion dollars, not counting contractual debt and crown corporation debt)...And these BC Liberals want to add $15 billion dollars in more debt for power we don`t need?..

 http://commonsensecanadian.ca/bc-hydro-inflates-demand-justify-site-c-dam/

Here are Christy Clark`s own words.

"LNG is our priority in British Columbia and we don’t need to do Site C in order to fuel up the LNG industry,” Clark said, adding she ran for office on a pledge to establish the sector."

 http://www.bloomberg.com/news/2014-12-10/british-columbia-clark-optimistic-on-lng-despite-oil-rout.html

Christy Clark`s mouth says we don`t need to spend $billions of dollars that we don`t have on Site C for LNG..

And guess who else says we don`t need Site C...

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"The retired head of the Association of Major Power Users of BC, Dan Potts, estimates the proposed Site C Dam would lose $350 million a year for taxpayers and BC Hydro ratepayers. The 30-year pulp mill manager told media in Vancouver yesterday that the project, estimated to cost $8 Billion or more, is “fundamentally uneconomic” – based on its outmoded technology and power trading prices that are likely to remain far lower than the cost of electricity produced by Site C.

Potts made the comments at a press conference organized by the District of Hudson’s Hope – where the 80 km-long reservoir would be located – to raise concerns about Site C in advance of the federal cabinet’s ruling on the project, expected this Fall.

Potts and other speakers, including agrologists, farmers, First Nations leaders and elected officials from the region, called for the BC Utilities Commission’s oversight of the project to be restored. The independent energy watchdog was stripped by the BC Liberal Government of its usual role of reviewing a project based on issues like cost and need. In the absence of that review, Potts worries that a project which makes no economic sense may receive unjustified approval.
“This project is turning gold into lead,” said Potts.

It’s going to have a legacy of wealth destruction…It’s going to sap the province’s ability to raise money and borrow money, to do other things, such as infrastructure, hospitals, schools – all the things we need to do."

 http://commonsensecanadian.ca/VIDEO-detail/fundamentally-uneconomic-site-c-dam-lose-350-million-year-taxpayers-industrial-energy-expert/

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So here we have experts, and he`s not alone, calling Site C a boondoggle in the making, a very expensive boondoggle, not only will it cost much more than $10 billion, interest payments on that debt will be $400 million per year....And it will lose on average another $350 million per year in direct losses...

All in, this project could end up costing BC taxpayers $30 billion dollars after interest payments and operating costs...for power we don`t need.

The BC NDP should refuse to even enter our provincial legislature until Site C is taken off next summer`s starting date agenda...You see readers, friends, British Columbians, there is time for a strong opposition to fight for British Columbia, that time is now, before the legislature opens...How many days do politicians need off, vacationing, sitting on their over-paid asses!

We must demand that Site C go to a non partisan regulator, or non-partisan committee...Like the BCUC...This project must be vetted by those who have no skin in the game, by those not wanting to win or steal an election..

There are power generating turbines being added to BC`s Mica dam...For a cost of $500 million dollars Mica Dam will produce extra power, the new power generated, on top of power Mica already produces......For $500 million dollars a couple of new added turbines will produce half the power of Site C Dam..Without flooding land, flooding farm land...Merely adding turbines to an existing dam will create half the power of Sire C dam...for a cost of $500 million dollars...

1/20th the cost of Site C dam ....Mica will produce half the power Site C would at 1/20th the cost..

Where is the media outrage?

Someone needs to haul the BC Liberals off to jail..Demand a Site C plebiscite, or referendum...

The biggest expenditure ever proposed in British Columbia with not one shred of evidence that this power is required..

It would be criminal to allow that big of an expenditure without the case being made that the power is needed..

If the NDP can`t persuade the powers at be, the courts, the new media, the internet media..

We need all hands on deck to stop this $15 billion dollar theft of public money...

We need to explore other options for power..Like this option...

Since we have, according to Christy Clark and Rich Coleman, "British Columbia has some of the largest known natural gas reserves in the world, more than enough for domestic use only, hundreds of years of supply", more than we can ever use domestically.....And as of right now, and probably forever, we don`t and won`t have an LNG export industry..

What British Columbia has is tonnes of natural gas and nowhere to sell it, how about we sell it to ourselves..?

British Columbia could create a market for domestic natural gas, no need to liquify if...And at the same time can create 800 to 1200 mega watts of power, or more,  as much power as Site C dam would produce..

We would not have to flood 30,000 acres of fertile northern farmland...Thus that land up north would not be flooded, the land would continue to grow food and be a carbon sinc, , meaning the non-flooded land would absorb greenhouse gases...Absorb enough greenhouse gas to offset the below proposal..

A proposal that would give B.C. options, options to turn up or down the electrical output depending on the needs, this electrical plant would only take up in total space..24 hectares of space/land required...

And here`s the most attractive part of the whole deal...For a cost of about $1.4 billion dollars we could produce as much power as Site C..

 We could save over $10 billion dollars before interest charges...BC Hydro`s ratepayers would not see their bills go through the roof...

We could build the world`s cleanest, newest, most modern most efficient natural gas electrical generating plant in the world...At the same time greenhouse gas emissions from the natural gas plant would be offset by not flooding 30,000 acres of farmland..no homeowners to piss off, to buy out..no First Nations to cut deals with, plus it gives our natural gas drillers a new market for some of their gas, that means some royalties for the province..And create B.C. jobs for B.C. workers.

And we will save not a few $hundred million dollars but over $10 billion dollars ...

And if someday in the future LNG exports produce bigtime revenues for the province we can shut down this plant, maybe nuclear fusion will come online, newer more efficient appliances, possibly domestic power generation that could feed into the grid, like solar, tidal, geo-thermal and who knows what other technological miracles are coming down the pike..

Pipe dreams, no....A win win win...BC Taxpayers win...Saving food growing farmland wins...A new market for our gas drillers, a win for them, a win for BC`s credit rating and a break-even win for the environment, what greenhouse gas emissions are expelled will be offset by not flooding 30,000 acres of farm land, maintaining the land as a carbon sinc.

BC Hydro won`t have to carry a $20 billion dollar debt, ratepayers won`t have to carry that debt on their bi-monthy electric bills..

British Columbia could save $billions and $billions of dollars by building a copy of this..

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 "Shepard Energy Centre is a new, natural gas-fired power plant being built near Shepard Industrial Park in south-east Calgary, Alberta, Canada. The project, estimated to cost C$1.3bn, is being hailed as one of the largest projects ever undertaken by the city of Calgary.

The facility will have a nominal plant rating of 800MW and will be the largest natural gas-fired electricity generation facility in Alberta when commissioned in 2015.

It will generate enough electricity to meet the needs of more than half of Calgary's existing power demands.

The facility will use an advanced emissions technology and will generate less than half the CO2 per megawatt than a conventional coal-fired plant. The plant will be owned and operated by Enmax Shepard, a subsidiary of Enmax Energy."

Enmax Energy's Calgary plant features

Important features of the plant include natural gas compression, auxiliary boilers and a wet surface condenser and cooling tower. Heat recovery steam generators (HRSGs) will be partially enclosed, while the steam turbine generator (STG) and gas turbine generators (GTGs) will be fully enclosed. The project also has provisions for future carbon dioxide capture.

 http://www.power-technology.com/projects/shepard-energy-centre/

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We have time, Major Site C dam construction has not started

Plus there are many lawsuits pending..

I personally asked John Horgan and the NDP party to pay for and commission a non-partisan study exploring the options I highlighted above, if the BC Liberals can prove we need much more power in the future and Site C is the only viable option, so be it, if the BC Liberals have complete faith and confidence they shouldn`t fear a non-partisan committee to review in depth Site C, the costs, the ramifications and other options.

 We may not even need the natural gas power plant, but if we need power, this is the route to go..

However, the time has come for the opposition NDP to step up to the plate, the BC Liberal`s clean energy act is gone, out the window, each proposed large LNG plant would add near 9 million tonnes of greenhouse gas emissions to our provincial airshed each year...This natural gas electrical plant would add about 1/10th of that total...BC`s clean energy act is null n void with an LNG industry..

Christy Clark and the BC Liberals have been talking the talk, Christy Clark was blathering in public how "BC`s LNG would clean China`s airshed and make the world`s air cleaner".. 

If that is true, if it is good enough for China than a natural gas electrical plant must be good enough for British Columbia too.

We as a province could even buy carbon offsets, $100 million dollars worth of carbon offsets per year and we would still be ahead of the Site C cost by $billions and $billions of dollars..We could buy offsets of that amount for 30 years and only spend $3 billion dollars... Add in the cost of a natural gas electrical plant of $1.3 billion to even as high as $2 billion dollars, add both amounts together ....$5 billion dollars...And we wouldn`t have to buy carbon offsets if we didn`t need to....As stated above...We would not be flooding 30,000 acres of carbon absorbing farmland...

We can`t wait until the spring session of the legislature starts to begin this battle..

 Building a natural gas electrical plant(if we need the power) is a win win... 

BC jobs, BC workers..A electrical generating plant using B.C. natural gas, drilled by B.C. natural gas well drillers, piped through B.C. pipeline, power generated flowing to B.C. homes at a fraction of the cost of a Site C dam...Thus saving the province, saving B.C. Hydro $billions of dollars...Saving ratepayers even $billions more, money that will flow into our economy rather than to New York Bond Buying hedge funds..

A win win win...

We need the media to get onside with this plan...We need the BC NDP making wave after wave...Refusing to sit in our legislature until all these $billion dollar plus saving options are explored thoroughly by non-partisan entities with no skin in the game..

We need The Straight Goods....We need leadership, we need a robust opposition...

Who knows what energy efficiencies lie ahead in the future..A $1.3 to $2 billion dollar natural gas electrical generating plant can easily be decommissioned...A $15 billion dollar dam, not so much..

Food security....Saving ever declining farmland stocks...Not having to flood 30,000 acres...Not having to buy out home-owners, northern businesses, not having to fight First Nations in the Peace region..

The non-flooded land will grow food and absorb carbon...B.C. workers to build a natural gas power plant, giving our drillers another market for our excess gas..

Everybody wins, taxpayers, ratepayers, northern homesteaders, First Nations, the environment, our credit rating..

Everybody wins....

The Straight Goods

Cheers Eyes Wide Open

The Alberta Experiment, Athabasca, River of Death

Written by Grant G



 http://www.thestar.com/news/canada/2013/11/03/another_cn_train_derails_in_rural_alberta.html

We a humans have been operating trains for over 100 years, even after a century we can`t prevent rail accidents or pipeline leak and ruptures, oil tankers, factories you name it, spills, fires and environmental damage will happen and that is why Enbridge`s northern gateway pipeline is a dead pipeline...

Despite blatherings from Harvey Obefeld, Joe Oliver, Fraser Institute and or feel good fluffy CAPP(Canadian Association Petroleum Producers)propaganda/advertisements featuring oil industry pimps frolicking with wild Orca and Salmon..

 Kinder Morgan's and Enbridge`s proposed Northern Gateway pipeline if built will leak, spill, rupture on numerous occasions, and it`s almost a certainty there will be an oil tanker spill of epic proportion, not if but when..,...That`s not me saying that, Enbridge`s own people, staff and hired engineers say as much...

 

PatRiotChick ‏@PatOndabak

Leaked document on environmental impacts of Cdn #oilsands. No wonder Harper muzzled scientists #cdnpoli #tarsands

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I`ve said it before, areas that are pristine and clean are the lifeblood that nurtures BC`s entire west coast, the nursery, feeding grounds for most of our iconic species like the orca, wild chinook salmon, kelp and life generating herring spawn, if we harmed Haida Gwaii or the inside passage with the oceans already in trouble, salmon on the decline, acidic, jellyfish blooms, if we spill in the world`s only northern temperate rain forest we are guilty of crimes against humanity, we have no right to deliberately extinct species, anyone who pushes Enbridge's or Kinder Morgan'a pipelines proposals against the will of the majority are guilty of crime, malice of forethought, if oil must move put it where pristine has already been destroyed...

Accidents will happen, placing environment destroying pipelines and tankers where the inevitable spill will have life-altering for the worse consequences is not bad judgement, it`s a crime against humanity....The below is a repeat from 2 years ago, it just happens to be about Alberta`s Athabaska river..

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Now showing, get your tickets, set a date, make some popcorn and buy extra twizzlers......

I present to you a film, one that the mainstream media in Canada won`t play or air....It`s in 2 parts......So without any further ado I present a thrilling film by .....Niobe Thompson....The documentary was aired on the Al Jazeera network, the last vestige of quality journalism!

Al Jazeera runs a show called Witness, Niobe Thompson hightlights the work of David Schindler where he proves not only the Alberta Government is lying but also how the Canadian Government is prepared to sacrifice human life or any life that gets in the way of the "Alberta Experiment" ...The film is touching, simple, pure....

 Part I video...Athabaska, The River of Death

Part II ...Athabaska, The River of Death

Spreading the message, it didn`t start here but I can assure you contributors that the message won`t stop here....

Enjoy the Film. and pass it on...

One day we will look back on this time in history and say.....


"Are you kidding me!"


And one day, maybe I will get a story published by Al Jazeera.....It would mean more than a story published by Black press or Rupert Murdoch, Postmedia...or even the London or New York Times....Hmmm, Al Jazeera network, the best in the business, who woulda thought that a decade ago......History will be kind to Al Jazeera..


The Straight Goods

Cheers Eyes Wide Open

British Columbia LNG---Breaking-Shell Canada..OUT of the GAME

Shell halts LNG Canada FID

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

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Shell Canada is out...

 https://soundcloud.com/cknw/whats-the-deal-with-bc-lng-the-simi-sara-show-thu-feb-4

    https://soundcloud.com/cknw/whats-the-deal-with-bc-lng-the-simi-sara-show-thu-feb-4

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  The Straight Goods Special..British Columbia LNG-The Last Gas(P)

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

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The below Straight Goods article originally appeared on January 8th/2016...Told all you fine folk that the "key permits" Shell Canada received meant nothing, it was mere BC Liberal and industry spindoctor whitenoise!

 http://powellriverpersuader.blogspot.ca/2016/01/lng-british-columbia-oil-and-gas.html

 

  British Columbia Oil and Gas Commission is not a Regulatory Body, Its an Energy Industry Gift Shop

http://www.vancouversun.com/business/employment+grew+2015+highest+rate+canada/11639062/story.html


"The agency said British Columbia lost 7900 jobs last month, mostly full-time positions"


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(LNG) British Columbia Oil and Gas Commission is not a Regulatory Body, Its an Energy Industry Gift Shop


Written by Grant G


There has been lots of news on the British Columbia LNG industry as of late...And, the news has been bad, really bad..

Mr. Jarvis,  the executive director of Energy Services B.C. stated last week, and I quote..

"2015 has been the worst year in over a decade for the natural gas industry"

Mr. Jarvis went on to say..


"LNG investment may be too late after 2016"

"A triple whammy"

Jarvis says LNG workers suffered in 2015 due to three main factors, including cuts — as much as 20 per cent — to companies' profit margins, fewer projects, and more competition for jobs due to waning LNG sectors in other provinces.
"We're kind of hit with a triple whammy in this region," he said.
"What that means of course is less income to the communities, less income to the province, and of course, [it's] pretty tough to be sustainable," said Jarvis.

Dwindling opportunity

http://www.cbc.ca/news/canada/british-columbia/lng-jobs-2016-1.3389022

Mr. Jarvis also said the same thing and a whole lot more in this radio interview..

Have a listen(link directly below)

https://t.co/FDexuLTRWC

I have written on many occasions this...Every time bad news on the British Columbia LNG front rears it`s ugly head the following days out comes artificial LNG hype and spin,

The artificial spin and hype is generated by the BC Liberals and their spindoctors, or in this particular case..The spin and hyperbole is being generated by the British Columbia Oil and Gas Commission...Not a regulatory body, it is a BC Liberal creation called the British Columbia Oil and Gas Commission(also known as the British Columbia Energy Industry Gift Shop).

The very next day after the CBC story and radio interview with Mr. Jarvis..A article and radio interview where you can hear and feel the panic in Mr. Jarvis`s tone....the very next day out came this, courtesy of the British Columbia Oil and Gas Commission...And of course British Columbia`s domestic newspaper ran the article(posted the junk news)....That article linked directly below

http://www.vancouversun.com/business/shell+joint+venture+obtains+permit+facility+kitimat/11632155/story.html?__lsa=6dcc-b3f6

And....the hilarity of the article, not so much as to what was said in the article, but the headline of the article....Here is that headline

Shell-Led joint venture obtains KEY permit for LNG facility in Kitimat

This so-called "key permit" was issued by the B.C. Oil n Gas Commission..When has this BC Liberal creation ever denied any permit to the energy/natural gas industry, how many leaked stories about how this commission has granted illegal water- draw permits, even as northern streams and lakes are near dry...The point I`m making...

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B.C. Oil and Gas Commission accused of violating Water Act


Three environmental groups have filed a lawsuit against the British Columbia Oil and Gas Commission and natural gas company Encana over the use of water from B.C.'s lakes and rivers.
The suit, filed Wednesday in B.C. Supreme Court, claims the commission has granted repeated short-term water licences, in violation of the provincial Water Act.

The environmental groups say as Encana proceeded with the fracking process to extract natural gas from underground reserves, it drew 880 Olympic swimming pools worth of water over three years from the Kiskatinaw River, which supplies drinking water to the city of Dawson Creek.

http://www.cbc.ca/news/canada/british-columbia/b-c-oil-and-gas-commission-accused-of-violating-water-act-1.2425442

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Shell Canada was never ever concerned about getting a go-ahead and build nod from BC`s Oil n Gas Commission..All British Columbia permits required to build, or pipe gas, ship gas, pollute gas are already guaranteed....The BC Oli n Gas Commisssion has denied near nothing...The Vancouver Sun..The Province Newspaper must be aware of that or willfully blind..

In other words..The BC Oil and Gas Commission granted a permit to build to Shell Canada.

A building  permit that Shell Canada knew was guaranteed long ago, never in doubt...The news nugget? was merely pulled out, it was pulled out of a hat like a magician and his rabbit....

Christy Clark and Rich Coleman are still playing blind man`s bluff..Still trying to keep the LNG bluster alive and this will continue through to the British Columbia 2017 election...And, you can take this to the bank, by election time 2017..British Columbia will still not have an LNG terminal shipping LNG..By election 2017 ...We will still have vague promises of FIDs just around the corner..of course that will come with a warning..elect BC Liberals or the $trillion dollars and million new LNG jobs will vanish..blah blah blah...

Remember last summer, the special legislative session ...Where the BC Liberals rammed through a PDA for Petronas..Remember that generational giveaway.. ..The tax rate slashed, greenhouse gas rules removed, everything granted to Petronas...

The BC Liberal Corporate Party granted the B.C. Oil N Gas Commission new powers..Granting a "build permit" was never before in their purview..Ah.But those rascally BC Liberals changed that..and...

And Stephen Harper was busy toiling away on behalf of the energy industry too..

Stephen Harper(The oil obsessed Prime Minister) was still in power, and he was busy, not only did he appoint more energy industry hacks to the NEB(National Energy Board)..Stephen Harper granted the NEB new powers....
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After helping Kinder-Morgan lobby for the Trans-Mountain expansion, now Kelly will be on a board that is regulating pipeline construction. The NEB has already been criticized by the Sierra Club of Canada for creating regulations it claims benefit oil companies drilling in the Arctic.

Marc Eliesen, former CEO of BC Hydro said: “It’s utterly incredible the Government of Canada would appoint such an industry consultant to a regulatory agency that presumably is interested in the public interest, and not in the interest of multinational oil corporations.The NEB have totally become a captured industry regulator."

Read more: http://www.digitaljournal.com/news/politics/harper-appoints-a-pipeline-consultant-to-national-energy-board/article/440066#ixzz3whhBd7qj

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Well..That "key permit"  article wasn`t enough to quell the naysayers..the time was ripe to flex those newly granted NEB powers too..

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http://www.lngworldnews.com/lng-canada-granted-40-year-export-licence/

The Canadian National Energy Board granted a 40-year licence to LNG Canada to export liquefied natural gas from its liquefaction facility to be built near Kitimat, British Columbia. 

Under the licence, which still has to be approved by the Governor in Council, LNG Canada is allowed to export 1494 billion cubic metres, NEB said in its statement on Thursday.
According to the regulator, this is the first 40-year licence since the amendment of the National Energy Board Act in June 2015.

It was concluded that the volumes of liquefied natural gas LNG Canada plans to export are surplus to Canadian demand.

The joint venture set up by Shell, Kogas, Mitsubishi and PetroChina received a facility permit for its proposed liquefaction plant that would initially consist of two 6.5 mtpa LNG production trains with an option to expand the facility with additional two trains.

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The NEB only had the power to grant 25 year export licenses...after the Harper NEB amendment, they can grant 40 year export licenses!!!

Like I said...Those new NEB powers were flexed yesterday too...Right, ..BC Liberals needed another bit of LNG news to keep the "con" going...The Governor in council  highlighted above..That is Federal Jurisdiction...That still needs to be approved..

We`ll see what happens with that approval which is under Justin Trudeau control(or is it?)...

Anywho, what does all of the above really mean?....Not much at all...all it does prove is that BC`s domestic media are still ball-less wonders, still in the hands of the BC Liberals and big industry...Means there is still no quality journalistic LNG news coverage coming from British Columbia oriented mainstream media..Vancouver Sun..The Province..CTV..Global..CKNW..When it comes to LNG coverage BC`s media are still mailing it in...

Let`s get to the meat of the issue, there is still a world glut of LNG..There is still gobs and gobs of new LNG supply coming online, including USA`s Sabine Pass operation, they have started shipping LNG.. the price is still in the tank and China can no longer hide their recession... China can`t afford to build anymore ghost cities...

http://www.lngworldnews.com/update-cheniere-confirms-it-will-ship-first-lng-export-cargo-in-jan/


But what about Shell Canada, what about those BC Liberal generated stories, it must be true right?..No, just spin..

Here is how the story should have been reported in our domestic papers...
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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..

The Straight Goods

Cheers Eyes Wide Open

LNG in British Columbia, Here Comes the Tax Evaders-Petronas-Chevron-Shell Canada-Steelhead-AltaGas

  Assembled by Grant G


With Paul Godfrey's Postmedia newspaper business in total disarray....With Postmedia investigative journalism listed as an endangered species(I believe Postmedia investigative journalism is actually already extinct, no sightings reported in five years)....Postmedia is a mere corporate soapbox disguised as print media.... 

Further down Below this posting is some LNG project information posted in The Financial Post...The article below appeared a couple of months ago(November 2nd 2015)......Why am I posting the below information? There is a simple answer....and it has to do with our domestic legislative scribers/media...And it also has to do with British Columbia' s current loyal opposition party, that being John Horgan's BC NDP ...

Christy Clark...and natural gas minister Rich Coleman made the outrageous claim that three LNG terminals would create 100,000 LNG jobs....Here are direct quotes Rich Coleman made on February 22/2014......

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LNG minister laughs at the skeptics

 "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 terminals.' 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

 Three LNG terminals....100,000 jobs....Really Rich Coleman....?

The Financial Post is not a British Columbia oriented newspaper, it`s a corporate newspaper, however, the LNG projects mentioned in the below Financial Post article are proposed British Columbia projects, so, in light of Rich Coleman and Christy Clark's LNG job claims one would think that The Province Newspaper..The Vancouver Sun..Global BC..CKNW....Keith Baldrey..Michael Smyth..Vaughn Palmer...Les Leyne...Tom Fletcher...BC's legislative reporters would have jumped all over the below information.....But all we heard from those deaf, blind and dumb reporters was silence...Not a single word from any of the above mentioned news outlets(?)..

Read the below paragraphs....


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Steelhead LNG is widely considered a dark horse in the race to build export projects on the West Coast, but despite substantial challenges, a number of analysts note the company is rapidly making progress and has begun wooing potential customers in Asia. Kuzemko was in Singapore last week........

 The company, however, does not have a cost estimate for the Malahat LNG facility, which would process 900 million cubic feet of natural gas from northern B.C. per day......

 Asked how Steelhead LNG would keep a lid on its costs, Kuzemko said the Malahat LNG project is designed as a floating LNG (or FLNG) facility that would be built in Asia at a lower cost and floated across the Pacific to its destination on Vancouver Island..

 “Near-shore FLNG is becoming much more competitive,” Munton said. “You are starting to see the concept and the technology take hold.”........

http://business.financialpost.com/news/energy/steelhead-lng-vs-the-salish-sea-underwater-pipeline-must-be-negotiated-before-financing-can-be-secured?__lsa=7fc2-1733____

Ok.....Steelhead LNG has clearly stated that their proposed floating facility would be built entirely in Asia and barged to BC and hooked up to an existing pipeline in Washington state...Meaning the project would employ almost no one...All they require is 70 miles of pipeline to be built(40 miles of pipeline on the bottom of the Salish Sea(Georgia straight)....Seabed pipelines are laid down by a specialized ship...

What do you have to say Rich Coleman...30,000 jobs laying that pipe?...How many workers can fit on that ship....Oh, and as for the actual pipe...That too is coming from China,,..

The mainstream media reporting on LNG in the province of British Columbia is pathetic and sad...and it`s not that those reporters and columnists are stupid it`s because their corporate bosses at Postmedia forbade any domestic investigative journalism related to LNG and in particular to the LNG promises made by Christy Clark's BC Liberals...Postmedia writers do but one thing on LNG...They quote LNG industry pimps and quote BC Liberal spindoctors...

If it wasn't so tragic one could almost laugh....The scale of Christy Clark and Rich Coleman's lies are boundless...

What is even more amusing is...The Straight Goods reported on the new big thing in LNG on May 24th/2015 with this posting...

The Beginning of The end for Behemoth Land-Based LNG Export Plants(Petronas`s Achilles Heel, Finding Profit)

 http://powellriverpersuader.blogspot.ca/2015/05/the-beginning-of-end-of-behemoth-land.html

 

That article explained how the next wave of LNG liquefaction facilities will be floating, versatile, mobile and ....And built in Asia and barged into place...Thus creating almost no employment, merely temporary pipeline work.....And, you`ll love this...

 AltaGas...From the same Financial Post article...AltaGas has a floating LNG liquefaction proposal for British Columbia too(Douglas Channel LNG... in Kitimat)

But get this...AltaGas, their floating facility will be made in China too...and, there is an existing LNG pipeline already there, no need to even build a pipeline....How many jobs will that project create Christy Clark?...30,000??? 20,000?....How about thirty jobs!

Another totally foreign built LNG facility being barged to British Columbia..

Need another laugh...There are import taxes/fees owed to Canada on bringing in a foreign built floating LNG liquefaction facility...And you guessed it..Altagas refuses to pay the tax,,Here are two sources confirming just that...Here is the quote from
David Harris, AltaGas Ltd. - President   (dated October 29th/2015)

________

 "We continue to work with our partners at the DCL consortium to progress our LNG export plans pending resolution of the import duty on the barge."

 http://finance.yahoo.com/news/edited-transcript-ala-earnings-conference-031726485.html

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 And double confirmed in the below Financial Post article dated November 2/2015

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On an earnings call last Thursday, management at Calgary-based AltaGas Ltd. — another FLNG project proponent — said they expect a decision in November(2015) on how their company’s Chinese-built floating project would be taxed when it’s imported into Canada.

 That project, called Douglas Channel LNG, is widely considered one of the first projects likely to be built on the West Coast and is also tapping into an existing natural gas distribution system
 http://business.financialpost.com/news/energy/steelhead-lng-vs-the-salish-sea-underwater-pipeline-must-be-negotiated-before-financing-can-be-secured?__lsa=7fc2-1733
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How many jobs will the Douglas Channel 100% foreign built and barged to British Columbia create Rich Coleman?...30,000 jobs, 20,000 jobs?.....How about 30...

But those are small facilities, what about Petronas's Pacific North West LNG proposal...Our domestic media keep using the $dollar figure $36 billion for that project...Yet everyone knows the estimated cost for that proposal is $11.4 billion....Surely that project will be built in British Columbia if it goes ahead with a positive FID...No, it will not be built in British Columbia either....And our domestic media...Vaughn Palmer..Les Leyne..Michael Smyth..Tom Fletcher, every single British Columbia legislative reporters and columnists and all of Post Media's newspapers know that too..

Yet they don`t report it...They cling to a fictional $36 billion dollar number and nary report that the entire facility will be manufactured in Asia...

Only one writer ever told the truth about Petronas's PNW LNG project....
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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


 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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$8 billion dollars worth of modules and mainframes on a $11.4 billion dollar project all being imported into British Columbia from Asia,,,

And guess what....Petronas is asking to have all import taxes waived goodbye...As in Petronas is refusing to pay...

And I guarantee this...If and when Petronas is granted their import tax waiver...That $8 billion dollars worth of imported modules and mainframes will suddenly balloon in cost to $20 billion dollars worth of imported mainframes and modules....And you guessed it, as reported near exclusively by The Straight Goods....All those Australian LNG plants that went over budget by 50%...80% or in the case of Chevron's Gorgon Plant..100%....There is a deliberate game of political bribes and inflated build costs with the energy giants getting kickback money....Why would they do that you ask?...

Because these energy giants can write off their build costs,....meaning the taxpayer pays double the money back to the company...

Christy Clark`s LNG Fantasy Reality Check

  http://powellriverpersuader.blogspot.ca/2013/05/christy-clarks-lng-fantasy-reality-check.html


Are you ready for this shocker????..This is what's coming to British Columbia through the LNG energy fraudsters...The BC Liberals enshrined this scam into law,,

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Chevron paid only $248 tax on $1.7b profit, Senate tax inquiry told

 Chevron Australia's US parent company paid income tax of only $248 last year despite earning an estimated $1.73 billion profit on interest charges to its Gorgon LNG development, documents filed with the Senate inquiry into corporate tax avoidance show.

Chevron Australia Petroleum Company, incorporated in Delaware, charged its subsidiary Chevron Australia $1.8 billion in 2014, more than 25 times the interest cost it pays to external lenders, on $36.5 billion of debt.

None of this profit appears to have been taxable in the US, with Chevron APC paying less than $US200 a year tax for the last decade, documents submitted to the tax inquiry by the International Transport Workers' Federation (ITF) show.

Chevron Australia has confirmed the Australian Tax Office is auditing its funding arrangements on the $US54 billion ($76 billion) Greater Gorgon LNG development, after the Federal Court last month confirmed penalty assessments on an earlier tax-free funding scheme by the group.


 Read more: http://www.afr.com/business/energy/gas/chevron-gorgon-company-paid-only-248-tax-on-17-bn-profit-senate-tax-inquiry-told-20151108-gktu7s#ixzz3yoJ92B87

Follow us: @FinancialReview on Twitter | financialreview on Facebook

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Need more...It's not just Chevron....

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Chevron, ExxonMobil & Shell and the $3 billion Gorgon tax two-step

Chevron, ExxonMobil and Shell are headed for a showdown with the Tax Office over tax-free profits of up to $3 billion a year.

Chevron, ExxonMobil and Shell are facing a showdown with the Tax Office over tax-free profits of up to $3 billion a year they are making from the huge Gorgon project, even before they have shipped the first gas.
The key to understanding this ongoing battle over the $US54 billion ($73 billion) project lies in its long and colourful history. Its origins date back 14 years, when Chevron Corporation announced a takeover of rival Texaco.
In any corporate mega-deal, behind the billion-dollar headlines and bullish forecasts from the chief executive, the mergers and acquisition team is busy working out just how much tax the new, bigger company is going to save.
So it was only a matter of time before the Chevron finance team implementing the $US45 billion Texaco takeover turned its mind to the Australian earnings......

Chevron and Texaco's Australian arms would be merged into a single holding company. This was an opportunity to introduce a little more debt, Chevron execs noted in office memos. It would reduce Chevron Australia's taxable income.

Ongoing confrontation

What followed has set the stage for the ongoing confrontation between the Tax Office and one of the world's largest LNG projects, developed by Chevron (47.3 per cent), ExxonMobil (25 per cent) and Shell (25 per cent).

Back then, the result of all the office memos was that in mid-2003, Chevron Australia set up a subsidiary in the US called Chevron Finance Corporation (CFC). Within weeks, CFC had raised $US2.45 billion from issuing commercial paper, with an interest rate set at or below the London Interbank Offer Rate (known as Libor) for the US dollar.

Over the next five years, that would work out as an average annual interest rate of 1.2 per cent.

CFC immediately on-loaned the $US2.45 billion ($A3.7 billion) to its parent, Chevron Australia, but not on the same terms. The new interest rate would be based instead on the Australian-dollar Libor rate, which was around 5 per cent.

More mark-ups

If that mark-up was not enough, CFC imposed a further mark-up of 4.14 per cent on top of this. The result was that in the next four years Chevron Australia was paying its subsidiary interest of between 8.8 per cent and 10.5 per cent.

For CFC, the profit this produced was a form of arbitrage, and it proved a nice little earner. And there was a pleasing twist.
For US tax purposes, CFC was owned by Chevron Australia, so it was a foreign company that didn't pay US tax.

Chevron Australia paid the interest to CFC, which paid out the 1.2 per cent due to the banks, and the rest was profit. CFC shipped this profit straight back to Chevron Australia as dividends – which in Australia were US earnings, so the profit was not taxable here either.

Read more: http://www.afr.com/news/policy/tax/chevron-exxonmobil--shell-and-the-3-billion-gorgon-tax-twostep-20150814-gizijk#ixzz3yoMTVrSm
Follow us: @FinancialReview on Twitter | financialreview on Facebook

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But...Surely Petronas wouldn`t bribe public officials and inflate LNG build costs?

Actually yes...Price rigging, over-billing, inflated build costs, and bribing politicians is rampant among the big energy majors.

Tax avoidance is the name of the game with these companies...And we wonder why Alberta is broke?

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SBM Offshore settles with Brazilian court in Petrobras scandal

In December, Chabas and Hepkema appeared on a list of former Petrobras executives, sales agents and SBM Offshore executives who may be prosecuted in Brazil in relation to the scandal, in which executives from the Brazilian state energy company received bribes in exchange for work contracts.

State prosecutors say that, from 2004, certain Petrobras officials colluded with a cartel of companies to overcharge the oil company for construction and service work. Petrobras’ confederates were rewarded with bribes, much of which was allegedly shared with Brazilian politicians.

  http://splash247.com/sbm-offshore-settles-with-brazilian-court-in-petronas-scandal/

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Hang onto your wallets BCers...

If LNG gets a foothold here.....British Columbia will be net losers and go deeper in debt..

Isn't about time John Horgan and the BC NDP remembered what Loyal Opposition Means...And perhaps even acted like the loyal opposition?

Had to ask

 

The Straight Goods

Cheers Eyes Wide Open