Published: Wed, October 03, 2018
Sci-tech | By Patricia Wade

LNG Canada finally gives Trudeau the energy sector win he badly needed

LNG Canada finally gives Trudeau the energy sector win he badly needed

"It's the largest private investment in Canadian history, so we're really looking forward to everything moving forward".

The liquefied natural gas pipeline and export terminal would create between 300 and 500 jobs in Kitimat, enough to replace numerous jobs lost in the port town in recent years, Germuth said.

The prospect of billions of dollars in liquefied natural gas revenues has British Columbia's government preparing for a political and environmental juggling act as Premier John Horgan attempts to hold together his minority government while appeasing ever watchful climate guardians.

"It is a vote of confidence in a country that recognizes the need to develop our energy in a way that takes the environment into account, and that works in meaningful partnership with Indigenous communities", he said in the LNG Canada statement.

Wetselaar said global demand for LNG has grown 9 per cent in the a year ago alone and the LNG the project will produce is half as emission-intensive as coal, a power source which Asian countries are trying to replace with LNG.

Details from the agreement: Construction will start immediately with first LNG expected before the middle of the next decade.

Opposition Liberal Leader Andrew Wilkinson, former Liberal energy minister Rich Coleman and Skeena Liberal MLA Ellis Ross, a former Haisla Nation chief and early LNG backer in Kitimat, were present at the signing ceremony with Horgan, Prime Minister Justin Trudeau and representatives from the five global energy giants behind the LNG Canada project.

LNG Canada will receive PST exemption during construction, get a break in paying industrial electricity rates instead of LNG rates from BC Hydro, and the province repealed the LNG-specific income tax introduced by the previous Liberal government.

"Getting an LNG project to a final investment decision is like a moon landing", said Maarten Wetselaar, Shell's integrated gas and new energies director, in Vancouver.

As well as China, appetite is also expected to grow strongly in South Asia, where India, Pakistan and Bangladesh are all driving ahead on LNG import developments. The project may add two more trains totaling 14 million tpa, Mitsubishi said. "The natural gas sector has some work to do as well".

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"It's irresponsible to green-light a project that's overall carbon pollution is staggering - much larger than what industry and government report - especially when there is no clear climate strategy showing how B.C. will meet its legislated carbon pollution targets", David Suzuki Foundation science and policy director Ian Bruce said in a release.

"The advantage for Canada is that climate change knows no borders", he said.

Horgan defended his party's support of LNG Canada saying in a statement that the project will be the world's cleanest in terms of greenhouse gas emissions.

RBC said it estimated Canada LNG's "cost breakeven was around $8 per mmBtu".

Ottawa purchased the Trans Mountain pipeline for $4.5 billion at the end of August, just hours after a Federal Court of Appeal ruling delayed construction of a planned expansion of the project.

Once the facility is built, each company will be responsible for providing its own natural-gas supply and "will individually offtake and market its share of LNG", according to LNG Canada. Smaller pipeline companies including Pembina Pipeline Corp will also benefit, said RBC analyst Robert Kwan.

Promoting the sale of LNG at a trade fair.

It's the biggest private investment in Canadian history.

"I don't see it as a case of replacing US cargoes, more about meeting projected demand growth", said Wood Mackenzie analyst Nicholas Browne.

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