Christy Clark admits Site C not needed for LNG; Cracks forming in her support for project: Bloomberg
According to this Dec. 10 story from Bloomberg, BC Premier Christy Clark remains bullish on the beleaguered LNG industry – but, more notably, she has finally given up on the notion the Site C Dam is needed to power LNG plants. Her comments here show cracks forming in her government’s support for the $8 Billion-plus dam:
British Columbia will prioritize LNG over a proposed hydroelectric dam, the C$8.5 billion Site C project, if labor estimates show it will put LNG projects at a disadvantage in securing workers, Clark said. The power project can probably go ahead when the government decides on it by the end of 2014, she said.
“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. “Hopefully, we will find a way to do both, but if it’s one or the other, I’m choosing LNG.”
As for LNG, Clark’s hopes are undiminished by slumping Asian prices for the commodity and the recent surprise announcement from Malaysia’s Petronas that it is putting its $36 Billion pipeline and terminal project on hold:
Canada’s ambition to become a top LNG exporter is on track even with oil’s plunge as investment decisions on two mega-projects are set to come next year, British Columbia Premier Christy Clark said.
Malaysia’s Petroliam Nasional Bhd. and Indonesian billionaire Sukanto Tanoto’s RGE Group are poised to proceed with plans to chill and ship gas to Asia from Canada’s westernmost province before the end of 2015, Clark said today in an interview at Bloomberg’s headquarters in New York.
“Our goal is to be the second-largest exporter of LNG in the world,” Clark said. Australia is set to overtake Qatar as the biggest LNG exporter. “We are where we want to be.”
Petronas, as the Malaysian state-owned producer is known, earlier this month followed BG Group Plc in pushing back a decision on LNG plans in British Columbia as oil trades at five-year lows. Delays in Canada contrast with projects in the U.S. and Australia that are already under construction.
Clark said she’s confident three terminals will be built by 2020 among at least five over the long term as she seeks to eliminate the province’s debt with revenues from the nascent industry.
West Texas Intermediate crude, the U.S. benchmark, has fallen more than 43 percent since a June high, to $60.96 at 3:14 p.m. in New York, because of a glut. Brent oil, a global grade, has dropped about 44 percent to $64.30.