A new report from EY concludes that moving British Columbia’s LNG opportunity from potential to reality necessitates all industry proponents coming together to address five key factors impacting competitiveness.
Barry Munro, EY’s Canadian Oil and Gas Leader, said: “Investment will depend on whether LNG projects are competitive globally. Plentiful natural gas reserves alone will not support development.”
The report, ‘Competing in the global LNG market: Evolving Canada’s opportunity into reality’, states that Canada must zero in on the five factors that determine competitiveness on the global stage:
- Global competition
- First Nations
- Capital allocation
- Fiscal policy
- People, processes and costs
“Unanswered questions revolve around many of these factors — each with the power to attract or deter investment here in Canada,” says Munro. “Working together with the various stakeholder groups to address these questions head on is the only way we stand to benefit from B.C.’s LNG resource potential.”
The report suggests that it is important to determine how competition will impact supply, demand and pricing balances, creating a framework that’s supported by First Nations, addressing complex capital allocation decisions, building a fair fiscal policy and developing world-class competencies around people, processes and costs.
EY is a Silver Sponsor of the ‘International LNG in BC Conference’. The conference brings together BC community and First Nations leaders, environmental leaders, elected officials and LNG proponents from across B.C. and around the world.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/21052014/bc_lng_competitiveness_631/