A report released by The School of Public Policy at a press conference and business lunch in Vancouver argued that British Columbia (B.C.) faces a backlash over LNG export plans if it does not act fast.
The authors of the report, Michal Moore, Dave Hackett, Leigh Noda, Jennifer Winter, Roman Karski and Mark Pilcherargue, said that the market for LNG is becoming increasingly popular and competitive as projects seek Asian buyers.
"Producers around the world – including in the newly gas-rich US – are racing to lock up market-share in the Asia-Pacific region, in many cases much more aggressively than Canada. While this market is robust and growing, the nature of the contracts for delivery will favour actors that are earliest in the queue. And, as supply grows, so too does the likelihood of falling gas prices in the Asia-Pacific region, making later projects less lucrative."
The authors noted a lack of policy and regulatory co-ordination in Canada and criticised the B.C. government's proposed LNG special tax. Disagreements between governments over standards, processes and compensation in the potential LNG industry are stalling the approval of projects, like pipeline rights of way and agreements with First Nations, and the new tax could negatively affect both the cost of financing and the ability to access markets in a timely fashion. This, the report claims, could destroy the prospect of Canadian LNG export altogether.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11072014/bc_lng_projects_in_jeopardy_according_to_report_963/