Tag Archives: LNG

Russia Completes First Delivery of LNG to Japan by Arctic Tanker Route

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Check out this story from RT on Russia’s successful delivery of Liquefied Natural Gas (LNG) to Japan by way of arctic shipping route. With the world’s leading gas producer now able to reach Asian markets, BC’s plans to do the same look increasingly unlikely. (Dec. 5, 2012)

The tanker Ob River carrying natural gas has successfully completed a trip through the Arctic Ocean from Norway to Japan, becoming the first ship to try a safer trade route for gas supplies than the more risky routes in the Southern seas.

­The ship departed November 7 from the Hammerfest Snohvit LNG facility headed for the Japanese utility Kyushu Electric Power Co. Before that the tanker completed a test trip on the Arctic sea route empty. The journey took 20 days, three weeks less than the usual route though the Mediterranean Sea, the Suez Canal and around Asia.

“The trip was completed accident free and in accord with the timetable,” Russian gas major Gazprom said in a statement. The company said it has been preparing for the trip for over a year.

Gazprom Marketing and Trading Ltd., a unit of Gazprom chartered the ship with an international crew of 40 from the Greek Dynagas company. The Ob River can carry up to 150,000 cubic meters of gas which is chilled under pressure to turn it into a liquid. The ship has been accompanied by Russian nuclear-powered icebreakers “50 years of Victory”, “Rossya” and “Voigach” during the trip in the Arctic waters.

“Two trips of the Ob River have fully proved the technical and economic viability of the Arctic route for international LNG supplies,” Gazprom said.

With high-quality icebreaker protection, shorter delivery times, increased volumes of supply and no risks of military conflicts and pirate assaults it could be attractive and a safer solution for international trade”.

Chartering an LNG tanker can cost as much as $150,000 per day, companies that want to send gas from the North Sea to North Asia could save up to $3 million using the Arctic passage instead of Suez. The cost for hiring icebreakers is an added extra. The Arctic route is suitable for navigation only few months a year, casting a shadow on the profitability of the project.

But scientists say with climate change and a decreasing Arctic ice level it is likely the length of the sailing season could be extended and sea traffic across the Arctic sea route would grow rapidly. In September, scientists announced Arctic sea ice dropped to 3.4m square kilometres – 50% lower than the 1979-2000 average.

Read original story: http://rt.com/business/news/tanker-arctic-sea-route-complete-337/

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Audio: Damien Gillis Talks Chinese FIPA, Fracking, Water on Nanaimo Radio

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Damien Gillis appeared recently on Nanaimo’s CHLY Radio to discuss a number of key political and energy issues in Canada. Gillis and host Rae Kornberger of A Sense of Justice cover the controversial proposed Canada-China trade deal and how that relates to energy and environmental issues in BC particularly. Included amongst these is natural gas fracking in northeast BC and the enormous volumes of fresh water required for these operations. Listen to the interview in two parts – as well as one highlight clip dealing with proposed water licences for fracking. (recorded Nov. 28, 2012)

Highlight Clip: Water Licences for Fracking (6 min)

Full Interview – Part 1: Chinese FIPA

Full Interview – Part 2: Water, Fracking and Fort Nelson First Nation

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TransCanada Announces Yet Another Proposed Gas Pipeline to Kitimat – May Skirt Environmental Assessment

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Read this story from Larry Pynn in the Vancouver Sun on TransCanada’s proposed gas pipeline from Dawson Creek to Kitimat, BC, which leading environmental critics fear could avoid any environmental assessment under the new Harper regulatory regime – despite crossing 320 watercourses and affecting close to 300 different fish and wildlife species along the route. (Nov. 26, 2012)

TransCanada’s planned 650-kilometre natural gas pipeline to Kitimat would cross about 320 watercourses including the habitat of more than 100 species at risk, such as white sturgeon, woodland caribou and marbled murrelet, company documents show.

But under Conservative government changes to environmental laws, there’s no guarantee the Coastal GasLink project will undergo a federal environmental assessment.

“It’s a travesty of the public trust,” said Otto Langer, retired head of habitat assessment and planning for the federal fisheries department in B.C. and Yukon. “If we can’t have an environmental review on a project of this sort, this is proof we have gutted Canada’s environmental protection.”

The federal government is soliciting public comment on whether a federal assessment is warranted for the Coastal GasLink project.

Céline Legault, spokeswoman for the Canadian Environmental Assessment Agency, said that even if the project is not subject to a federal environmental assessment, “all applicable federal legislative, regulatory and constitutional requirements must be fulfilled.”

TransCanada has also submitted its project description to Victoria in advance of an official assessment by the B.C. Environmental Assessment Office.

Langer dismissed the notion of a provincial assessment because the B.C. government is “giving the green light everywhere” to projects and that its environmental review process is too soft on industry.
“It’s pretty sad,” he said. “I don’t know how we slipped down this slope so quickly … and I don’t know where it will all end.”

B.C.’s Environmental Assessment Office reported in August it had conducted assessments of 162 projects in the last 20 years. Only two were refused outright — Kemess North copper-gold mine in 2008, and the Ashcroft Ranch landfill project in 2011.

Coastal GasLink’s 1.2-metre-wide pipeline would extend from near Groundbirch, a community 40 kilometres west of Dawson Creek, to a proposed liquefied natural gas facility near Kitimat.

The buried pipeline would initially have a capacity of 1.7 billion cubic feet of natural gas per day, which could be expanded to five billion cubic feet per day.

TransCanada documents outlining the pipeline project say it would cross four major drainages — the Peace, Fraser, Skeena and Kitimat rivers.

Of 286 species identified along the pipeline corridor, about 37 per cent (107 species) are recognized as species of management concern, Trans-Canada says.

Read more: http://www.vancouversun.com/technology/pipeline+TransCanada+British+Columbia+guarantee+envrironmental/7608045/story.html

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Potential LNG Energy Demands Stall Hydro’s Long-term Planning

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Read this story from the Vancouver Sun on BC Hydro’s inability to accurately plan for future energy demands given the enormous potential requirements of proposed Liquefied Natural Gas projects on BC’s coast. (Nov. 19, 2012)

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.
However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2CgqEklP7

WASHINGTON – Paula Broadwell, whose extramarital affair with CIA chief David Petraeus led to his resignation, is telling friends she is devastated by the fallout.

Read more: http://www.vancouversun.com/life/Petraeus+biographer+Paula+Broadwell+devastated+regrets+damage/7570658/story.html#ixzz2Cgpo5BTa

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2CgpT24MB

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2CgpT24MB

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2CgpIzrSC

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2Cgp7Y2oH

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2Cgp7Y2oH

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2Cgp7Y2oH

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2Cgp7Y2oH

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia’s power resources.

Energy Minister Rich Coleman said Friday that the deadline for Hydro’s Integrated Resource Plan or IRP, which was scheduled to be submitted to his office by next month, has been extended to August 2013 – three months after the next provincial election.

It’s the second delay – the original deadline was December 2011 – and it shows the challenges Hydro faces in developing a long-term electricity outlook amid rapid changes in the North American and global energy sectors.

The IRP is supposed to be a 20-year outlook on B.C.’s electricity needs, and Hydro has been working on it for several years. But just as Hydro released a draft version for public discussion, opportunities for LNG exports began to boom in Asia – particularly after the Fukushima nuclear disaster convinced Japanese regulators to look at other energy sources for electricity generation.

B.C., with vast, untapped natural gas reserves and proximity to Asia, is considered a secure potential supplier to that market.

Many of the world’s largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

However, the industry requires substantial amounts of energy to process and compress gas for export – equivalent to at least 20 per cent of B.C.’s present electricity consumption. That demand spike is not factored into Hydro’s draft IRP.

As a result, the IRP was more or less out of date from the day it was released this summer.

Coleman said in an interview that the IRP deadline extension is intended to address that problem. He said the government is already engaging in negotiations with LNG project developers.

Those developers – according to Clean Energy B.C., a group representing the province’s independent power producers – are concerned that Hydro cannot in a timely fashion build the generating capacity and transmission infrastructure to meet their needs.

“I am very confident that it’s a valid industry, and if we get our fundamentals right, this is going to change our economy for generations to come,” Coleman said. “That’s why it’s such an important focus right now.”

Coleman said the government would amend its Clean Energy Act in spring 2013 to extend Hydro’s delivery date for the IRP. In the meantime, negotiations with companies such as Petronas, Shell, BG and Apache continue.

The Shell project alone represents a $12-billion investment. “The result of those negotiations are going to obviously help shape that 20-year electricity plan. It was really clear that we needed to make sure we had that piece nailed down as we entered into the IRP process. So that’s why I’m going to extend it,” Coleman said.

NDP energy critic John Hor-gan noted that the deadline extension means the public won’t see Hydro’s amended IRP until after next May’s provincial election.

“Clearly they are delaying this until after the election,” Horgan said. “The downside of that is that it exposes the absence of any coherent plan. The upside is that they won’t do any more damage until after the election.”

Horgan said the B.C. Liberals are in disarray on the topic of natural gas, with Premier Christy Clark proclaiming it a major potential source of revenue and jobs while Finance Minister Mike de Jong is blaming declining gas prices and demand for a significant drop in provincial revenue.

Read more: http://www.vancouversun.com/business/prospects+delay+Hydro+mega+plan/7494384/story.html#ixzz2Cgp7Y2oH

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Schematic drawing for closed-containment fish farm - from DFO's feasibility study on the subject

One Step Forward with Fish Farms, Two Steps Back with Proposed Fossil Fuel Exports

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A couple of thoughts today.

A promising article on fish farms appears in today’s Vancouver Sun. At face value it looks like great news – the story of fish farming on land with no contact with the ocean.

As I say, it looks great but I want to hear what Alexandra Morton has to say.

The objection industry has always made is that it’s too expensive for them to compete that way. The answer to that, according to the Sun article, is that excrement can be recycled for profit and that expenses such as fish lost to predators, or to kill sea lice are avoided.

There is only one fair way to compare the two approaches: charge fish farms an appropriate rent for their leases to include ALL the environmental losses. This levels the playing field and is only fair.

The market for farmed fish is there as we deplete wild stocks around the world. The trouble is that our wild stocks are not depleted by over-fishing anymore but by allowing poisoned farmed fish to mingle with the wild.

Bringing the farms on land will only happen if ocean farms are taxed their appropriate due.


On another note, no sooner had the news been out that the US was looking to be self-sufficient in energy than the bottom feeders rose as one to tell us this means we must update our mining of the tar sands and the piping of it though BC to the coast then shipping by tanker to Asia. The US will no longer need our filthy bitumen so we must redouble our efforts to bugger up the environment in BC to ship even more of the stuff down our fjords.

What ever happened to weaning ourselves off fossil fuels?

If the rapacious industry must continue to mine bitumen, send it to a refinery in Alberta. Irrespective of US capabilities, there will always be a world market for oil.

Moreover, there is an economic reality being ignored. The price of fossil fuels will reduce considerably over what we figure makes a profit. It’s an open ended market. China takes our bitumen if that’s the cheaper way to get energy, it abandons us if it’s not.

I invoke Mair’s Axiom I: “You make a serious mistake assuming that people in charge know what the hell they’re doing!”

Here we are in BC doing everything we can to press forward with LNG plants to convert natural gas to liquid to ship it to new markets while the gas prices plummet. With “fracking”, supply around the world has dramatically increased. Do we really believe that the third largest country geographically in the world, China, doesn’t have fracking capability either at home or closer than Canada? In fact, they are just getting started.

China has it both ways – it can import from us when supply is short (don’t hold your breath for that to happen) or produce it cheaper closer to home.

We are idiots.


This neatly segues into the question of the next BC budget.

Going into the May election the Liberals will want a balanced budget. One of the main factors will be, of course, income and no prize for guessing where that will come from.

You got it – natural gas. The government hasn’t a clue what that figure will be but you can bet the ranch that they will generously err on the high side.

We must all remember that in 2009 they were more than $2 BILLION short of the real numbers and they got away with it.

Desperate people do desperate things and the false card the Liberals play is that they are better stewards of the economy than are the NDP – even though the evidence is quite to the contrary.

The NDP, in the meantime, have completely lost their minds. They are, you see, going to help the Liberals prepare the next budget! This all from Adrian Dix‘s desire to make the legislature more cooperative.

(I wrote a two-part series in The Tyee, recently on how that can be accomplished and this is not the way).

Randolph Churchill (father of Winston) once said, “it’s the duty of the Opposition to oppose”, and he’s right. My series suggests how that can be done safely.

The greatest fear of any legislator is the “unforeseen consequence” of his policy. Now the NDP are going to join the process so that we will not get the value of “the other side” and the NDP will deprive themselves of any ability to question the budget in the next election because, it will be said, it was the NDP’s budget too.

I, for one, am becoming quickly disillusioned with Dix and Co. Not only are they onside with the government’s energy policy – or prepared to go easy is areas like LNG – they seem to be laid back polishing up the crown they’re sure to get next May.

This isn’t helpful for the public but also puts the NDP into a sort of “drift”. The Liberals can see that and you can bet they will be in better political shape next May than they now are, helped along by the total collapse of the Conservatives.

Mr. Dix, in politics 6 weeks is an eternity and in this old pol’s view you are looking to inherit that which you must earn.

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LNG, Plans to Ship Canadian Gas to Asia Misguided

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Read this letter to the editor published in the Alaska Highway News which questions the province and gas industry’s plans to open up new markets in Asia by building massive Liquefied Natural Gas plants on BC’s coast. (Nov. 2, 2012)

…Alberta oil is not needed by China or any other part of the world. They have closer,less polluting sources available. The driving force behind Northern Gateway is nothing but corporate greed. If common sense prevails,Northern Gateway is “dead in the water”.

Now,we must also focus on what is fast becoming a horrible, depleting, destructive LNG industry. The proposed number of LNG plants and the diameters and number of proposed pipelines is totally unsustainable and amounts to nothing better than a pre-emptory attack on future generations of not only British Columbians but all Canadians. B.C. does not need to increase natural gas extraction. They simply need to collect royalties on all of the gas that is now being extracted.

While a much smaller, sustainable LNG industry might make sense, the current monstrosity does not. Government propaganda touting Canada’s vast natural gas reserves is neither accurate nor honest. My research shows Canada with 1% of the worlds proven natural gas reserves. China also has 1%. India has .57%.Why would we allow our resources to be depleted so we can give them to China which already has as much natural gas as we do? Australia has much more gas than we do (1.27% of world proven reserves) and is much closer to China and India,reducing polluting,destructive,expensive shipping. Also Russia with the worlds largest reserves(18.3%) borders on China. A land based pipeline could obviously supply China, completely eliminating the need for LNG. Because of the fact that LNG is as polluting as coal, the land based pipeline from Russia would be much, much better for our environment. LNG is NOT a “green” fuel.

Read more: http://www.alaskahighwaynews.ca/article/20121102/FORTSTJOHN0303/311029967/-1/fortstjohn/lng-liability

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A fracking rig in northeast BC's Horn River Basin (Damien Gillis photo)

Time the NDP Came Clean on Dirty Fracking, Gas-Powered LNG Plants

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My colleague, Damien Gillis, has been doing some superb work on “fracking” and I enter the discussion with considerable temerity. He is, after all, the brains and filmmaker of the organization and I the mere mouth.

It has seemed to me that we are moving – indeed may have already moved – away from the time when we were all opposed to fossil fuels in any form. The provincial government, for example, supported the so-called “run of river” (better described as “ruin of river”) projects by dumping all over using natural gas for power, even for the Burrard Thermal Plant, which is occasionally used by BC Hydro to shore up power in low water and extreme demand conditions.

In a breathtaking turnaround, Premier Clark has decided that when natural gas power is used to concentrate natural gas into a liquefied form it is no longer a nasty old fossil fuel.

Now, as if a magic wand had been waved, gas from fracking – extracting it from shale rock by using highly powered water pumps, laced with highly toxic chemicals –  is a wonderful idea.

To the utter disbelief of many, NDP energy critic John Horgan agrees!

This seems to me to be the classic way we do things – accept big business policy, let them get it firmly in place, organizing delivery to export sites to deliver to offshore customers, then hesitantly ask questions.

The Liberals I can understand. They run all policy by the Fraser Institute then its huckelty buck and away they go!

The environment only matters if it costs votes and it’s here the Clark government are acting on the correct assumption that the NDP doesn’t ask questions for they fear the taunt, “are you against everything?” This causes an immediate retreat into the coward’s corner such that they abandon their duty to hold government’s feet to the fire.

Let me pose two questions to the NDP.

Given the abundance of shale gas all around the world, is there not a real risk that the price of gas won’t permit us to export at a profit? Largely due to this recent glut of shale gas, natural gas prices are down and predicted to go lower. Under this regime, how can any government support such idiocy?

I’ll give you a hint, Mr. Dix and Mr. Horgan, of what you’ll see in the 2013 BC budget – hundreds of millions of dollars counted as tax receipts from thus enhanced gas industry. That will get Premier Photo–Op just what she needs for the election – the promise of huge revenues permitting them to balance their budget. Money on the come that will never come, just like the 2009 Liberal Budget which came in a little short…like $2 BILLION short.

To put it bluntly, they will project income that won’t materialize and like Charlie Brown and Lucy with the football – you never learn – you’re about to play the same game again! Moreover, you’re scared to ask the important questions for fear of being cast as “anti-business” or “anti-progress”.

Now don’t tell us that industry isn’t dumb enough to make huge investments when faced by huge losses. They can be and often are damned fools, pushed on by the momentum of old decisions they dare not abandon but, like Mr. Micawber, hope that “something will turn up”…Just like it did for the auto industry in 2011 when the government bailed them out.

Unfashionable though it seems to be in NDP circles these days, shouldn’t the Opposition be worried about environmental and safety concerns?

LNG has a good safety record except that when they have a problem it’s a huge one! Shouldn’t the good burghers of Prince Rupert and Kitimat have the NDP (forget the governments) and the Green Party be able to assure them that LNG plants in their midst is a safe plan? Can the NDP and Greens give that support? If they can, how come they were so against the proposed LNG plant in Texada Island a few years ago? Have things changed? Is it possible that the only thing that has changed is that the NDP might become government as long as they play their cards very carefully?

On the question of natural gas pipelines, is the NDP saying that no concerns should be raised, even though some local First Nations are starting to raise hell?

Rather than look at fracking not just as an environmental matter, what about safety?

Is there an increased chance of earthquakes? Obviously, if you dig a tunnel, you can be pretty sure it will eventually collapse – the casing for these bore holes can’t last forever. What impacts can this have?

And what about the water, contaminated with chemicals? Where does it go? Into the water table? Into our drinking water? Tell us, Mr. Dix and Mr. Horgan, again (I won’t trouble governments since they couldn’t care less), are you satisfied with corporate assurances on this matter? Why would they be any more caring on this issue than they are on others?

Now the environment.

How much fossil fuel will be burned as the energy to capture the fossil fuel from the fracking process? Yes, we will use energy to extract energy which we will then use more energy for to send it to customers! If we are afraid of the impact on the environment of the Burrard Thermal Plant, surely we must be very worried indeed about burning gas to mine gas and process.

Is Site C not now going to be used to create power so that industry can use that at a very cheap price to get at the fracked gas? Doesn’t this mean that we will flood more land to sell power cheaply to those who will use this cheap energy to turn into profits from the fossil fuels extracted by fracking?

Come to think of it, Mr. Dix and Mr. Horgan, let me pose the following propositions, not saying they are accurate but putting the onus on you and your corporate friends to show me I’m wrong. Let’s use the precautionary principle here:

1. Liquified natural gas (LNG) is very dangerous in the liquification process, the moving process and simply in storage. Your comments?

2. There is relatively little revenue to the province under the very best of circumstances – If you agree, why are you supporting LNG and if you disagree, let’s have your figures.

3. The likelihood is that the worldwide price for natural gas is dropping and will continue to drop, which will bring pressure on governments to subsidize and indeed bail out gas companies as happened with the automobile industry. If you disagree, why? If you agree, are you prepared to spend BC taxes one more time to bail out industry?

4. There is evidence of fracking leads to gas and other chemicals getting into groundwater thence into domestic water. What evidence do you have to deny this?

5. There is clear evidence of fracking causing earthquakes – what do you say to this?

6. Cheap power from Site C will subsidize gas companies in the fracking process – what say you to that?

7 Because of Site C, millions of hectares of farmland and grazing land will be lost – why should the people of BC make this sacrifice so that you can mine gas?

Then, gentlemen, this question: If BC has this huge capacity to make money, why are we liquefying it and sending it abroad when we could have all this cheap power for here at home? To keep our domestic energy costs low and make our industries more competitive?

I and the readers of The Common Sense Canadian – indeed all British Columbians await in the hopes that as an opposition party hoping to win government, you will favour us with an early reply.

Or is it, God forbid, that winning the next election is more important than an informed citizenry?

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Why the New ‘Golden Age of Oil’ Has Been a Bust

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Read this story from alternet.org on the various environmental and economic factors restricting the development of “extreme energy” – from fracking to shale oil and bitumen. (Oct. 4, 2012)

To reach their ambitious targets, energy firms will have to overcome severe geological and environmental barriers — and recent developments suggest that they are going to have a tough time doing so.

Last winter, fossil-fuel enthusiasts began trumpeting the dawn of a new “golden age of oil” that would kick-start the American economy, generate millions of new jobs, and free this country from its dependence on imported petroleum. Ed Morse, head commodities analyst at Citibank, was typical.  In the Wall Street Journal he crowed, “The United States has become the fastest-growing oil and gas producer in the world, and is likely to remain so for the rest of this decade and into the 2020s.”

Once this surge in U.S. energy production was linked to a predicted boom in energy from Canada’s tar sands reserves, the results seemed obvious and uncontestable.  “North America,” he announced, “is becoming the new Middle East.”  Many other analysts have elaborated similarly on this rosy scenario, which now provides the foundation for Mitt Romney’s plan to achieve “ energy independence ” by 2020.

By employing impressive new technologies — notably deepwater drilling and hydraulic fracturing (or hydro-fracking) — energy companies were said to be on the verge of unlocking vast new stores of oil in Alaska, the Gulf of Mexico, and shale formations across the United States.  “A ‘Great Revival’ in U.S. oil production is taking shape — a major break from the near 40-year trend of falling output,” James Burkhard of IHS Cambridge Energy Research Associates (CERA) told the Senate Committee on Energy and Natural Resources in January 2012.

Increased output was also predicted elsewhere in the Western Hemisphere, especially Canada and Brazil.  “The outline of a new world oil map is emerging, and it is centered not on the Middle East but on the Western Hemisphere,” Daniel Yergin, chairman of CERA, wrote in the Washington Post .  “The new energy axis runs from Alberta, Canada, down through North Dakota and South Texas… to huge offshore oil deposits found near Brazil.”

Extreme Oil

It turns out, however, that the future may prove far more recalcitrant than these prophets of an American energy cornucopia imagine.  To reach their ambitious targets, energy firms will have to overcome severe geological and environmental barriers — and recent developments suggest that they are going to have a tough time doing so.

Consider this: while many analysts and pundits joined in the premature celebration of the new “golden age,” few emphasized that it would rest almost entirely on the exploitation of “unconventional” petroleum resources — shale oil, oil shale, Arctic oil, deep offshore oil, and tar sands (bitumen).  As for conventional oil (petroleum substances that emerge from the ground in liquid form and can be extracted using familiar, standardized technology), no one doubts that it will continue its historic decline in North America.

The “unconventional” oil that is to liberate the U.S. and its neighbors from the unreliable producers of the Middle East involves substances too hard or viscous to be extracted using standard technology or embedded in forbidding locations that require highly specialized equipment for extraction.  Think of it as “ tough oil .”

Read more: http://www.alternet.org/environment/why-new-golden-age-oil-has-been-bust

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US Discount LNG Deal with Asian Buyers Shocks Canadian Industry, Undermines Plans for Bigger Profits Abroad

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Read this story from the Vancouver Sun on a recent deal by American company Cheniere Energy Inc. to sell Liquified Natural Gas (LNG) to Asian buyers at heavily discounted North American rates. The deal alarmed the Canadian natural gas industry, which is currently pursuing LNG exports to Asia on the premise of fetching the considerably higher prices Asian markets currently pay for the product. (Oct. 4, 2012)

British Columbia’s first major liquefied natural gas export terminal is facing a significant new challenge after a rival U.S. exporter signed a deal undercutting the hoped-for price for selling gas into Asian markets.

David Calvert, an Apache Corp. vice-president and manager of the Kitimat LNG terminal said U.S.-based Cheniere Energy Inc. set a dangerous precedent by agreeing to sell gas from its proposed Louisiana export terminal based on heavily discounted North American gas prices.

“Cheniere did a deal … that created quite a ripple through the marketplace,” Calvert said Tuesday, adding the deal has created “unrealistic” expectations for products from Kiti-mat LNG.

Speaking to an Energy Roundtable audience in Calgary on Tuesday, Calvert said the Kitimat site is cleared for a new terminal and work is starting on the pipeline route.

But, he added, final sanctioning of the terminal hinges on winning long-term sales contracts, which is not a done deal.

Calvert’s comments are significant, given Premier Christy Clark has founded much of her BC Jobs Plan on the development of as many as five plants exporting LNG into Asian markets.

Last year, Clark promised the first plant would be fully operational by 2015.

“Today, we’re looking at perhaps five big liquefied natural gas proposals that, if built, could add over a trillion dollars to our GDP in direct upstream and downstream benefits over the course of 30 years,” Clark said Tuesday in an address to the University of Calgary.

“That’s the potential of producing four trillion cubic feet per year of exports by 2020,” she continued, adding the land is already being cleared for Apache’s plant in Kitimat.

Apache needs contracts based on oil prices to justify the cost of the planned $4.5-billion LNG export plant and pipeline in British Columbia, Calvert said. The plant is a joint venture of Apache, EOG Resources Inc. and Encana Corp.

“The bottom line is for LNG producers to provide the stability buyers are looking for and for us to make the significant capital investments required for greenfield LNG projects, we must have long-term contracts with prices that reflect these critical consideration and realities,” said Calvert.

“We remain convinced that oil-linked pricing is critical to the viability of our Canadian LNG industry.”

North American natural gas prices have plunged amid a glut caused by rising shale output, increasing the interest in exports to Asia. Japan paid $17.58 per million British thermal units to import gas from the U.S. in July, according to LNG Japan Corp. Natural gas for November delivery settled at $3.531 per million Btu on Tuesday on the New York Mercantile Exchange.

Energy, Mines and Natural Gas Minister Rich Coleman said Wednesday he is not concerned about the pricing issue.

“Today we have three of the major players on liquefied natural gas in the world who have all taken up positions in British Columbia, that’s Shell, Petro-nas and British Gas. They’re all pretty aggressive.”

New Democratic Party energy critic John Horgan was more cautious about the outlook.

“I’ve said all along that this is a challenge and that the markets will determine if this is successful or not,” Horgan said Wednesday.

Read more: http://www.vancouversun.com/business/price+deal+alarms+firm/7342196/story.html

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photo: Kin Cheung/Associated Press

Harper’s China Syndrome: PM in a Pickle Over Nexen Buyout, Trade Deal

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Following an eventful couple of weeks for the Canada-China energy trade file, Stephen Harper finds himself in quite a pickle. The Prime Minster is stuck between his resolute commitment to opening up a carbon corridor to Asian markets and the increasingly politically untenable position of supporting wholesale Chinese state ownership of strategic Canadian resources.

In addition to Harper’s mounting challenges over the proposed $15 Billion buyout of Canadian oil and gas firm Nexen by Chinese state-owned CNOOC, several prominent Canadian voices – including Federal Green Party Leader Elizabeth May and Council of Canadians founder and world-renowned trade expert Maude Barlow – have piped up about a controversial trade deal quietly signed by Prime Minister Stephen Harper last month, which they say would give unprecedented rights to Chinese corporations over Canadian resources.

As the tide of opposition to the Nexen deal continues to rise, Harper was forced to acknowledge this week, “This particular transaction raises a range of difficult policy questions, difficult and forward-looking issues.”

That’s putting it mildly.

The Nexen deal is problematic for the Conservatives for three main reasons:

  1. Public opinion is squarely against it, with some 70% of Canadians opposing it and four in ten viewing China as a threat, according to National Post columnist John Ivison (who nevertheless urges Harper to approve the deal as it’s in Canada’s best long-term interests)
  2. The Official Opposition has finally come out against the deal this week and appears poised to make political hay with its position.
  3. Most importantly, by far, powerful American political forces are lining up against the deal – charging that allowing these resources to flow to China constitutes a national security threat (our own CSIS concurs).

On that last point, Congressman Ed Markey, the ranking Democrat on the House Committee of Natural Resources, wrote to US Treasury Secretary Tim Geithner in July, imploring his office to block the deal (someone needs to inform the congressman that this deal doesn’t technically fall under Geithner’s jurisdiction, but it’s nevertheless a noteworthy and influential objection). Wrote Markey, “Giving valuable American resources away to wealthy multinational corporations is wasteful but giving valuable American resources away to a foreign government is far worse.”

Apparently even the Americans – whose resources these are notrecognize the danger in handing them over to the Chinese!

Meanwhile, with the NDP continuing to nip at the Conservatives’ heels, Harper might do well to ignore the advice of John Ivison and consider the short and long-term implications of accepting such an unpopular deal. Heck, even some of Harper’s own MPs oppose it!

NDP Energy and Natural Resources Critic Peter Julian laid out his party’s opposition to the deal at a press conference Thursday, as reported by the Globe and Mail:

New Democrats “cannot support the rubber-stamping of the CNOOC takeover of Nexen,” Mr. Julian said. “We cannot see the net benefit when we look at a variety of concerns and criteria that have been raised by the Canadian public.” Those concerns, he said, included the environmental and human-rights record of CNOOC, the potential for job losses and the risk of decision-making gravitating away from Nexen’s Calgary head office, plus risks to national security.

It is this “net benefit” test, under the Investment Canada Act, that is at the core of the decision Harper faces – which is expected by October 12, but can and may well be delayed by another month. The NDP has expressed doubt that the Harper Government will conduct this “net benefit” test in a transparent enough manner to reassure Canadians.

According to the party’s industry critic Helene LeBlanc, “By studying this transaction behind closed doors and not specifying what criteria they used to determine what represents a net benefit for the country, the Conservatives have given us no choice. When in doubt, it’s best to back off.”

Conservative Industry Minister Christian Paradis called the NDP’s position “reckless and irresponsible” in a news release.

Meanwhile, Harper’s quiet trade deal with China has drawn heated rebuke the past several weeks, as the two issues inevitably dovetail into each other.

A statement from the Council of Canadians last week noted:

A bilateral investment treaty between Canada and China, which was signed earlier this month and made public by the Harper government yesterday, will put unacceptable constraints on Canadian energy and environmental policy…The organization is once again calling on MPs to reject the Canada-China Foreign Investment Promotion and Protection Agreement (FIPA), and to stop signing what are essentially corporate rights pacts inside standalone treaties and Canada’s broader free trade agreements.

The organization’s National Chairperson, Maude Barlow, drew together FIPA and the Nexen deal, stating, “Canadians need to know that as Harper considers selling off Canadian energy firms to foreign investors in China and elsewhere, he’s also signing investment pacts that let these firms sue the federal government when delays or environmental protection measures interfere with profits.”

Council of Canadians’ Trade Campaigner Stewart Trew suggested these deals do little to promote investment, as is their stated mandate. “They are very useful, on the other hand, for extorting governments when things don’t go their way. That could be delays or cancellations to energy and mining projects, environmental policies that eat into profits, even financial rules designed to create stability or avoid crises can be challenged.”

Green Party of Canada Leader Elizabeth May shared many of these concerns with the House of Commons this week, calling for an emergency debate on FIPA, suggesting it bears “grave and sweeping implications for Canada’s sovereignty, security, and democracy.”

In a statement on her website this week, May said, “I pointed out in my notice to the Speaker that this is perhaps the most significant trade agreement since NAFTA, and the fact that it can be negotiated and ratified behind closed doors is very corrosive to our democracy.”

“I also realize that an emergency debate is far from sufficient under the circumstances, but it might be the only opportunity Parliamentarians have to review and discuss FIPA before we are bound to it for the next 15 years, especially if neither the NDP nor the Liberals focus on it during their Opposition Days.”

Whether FIPA receives its due attention politically – let alone gets cancelled – remains to seen, but the more it becomes connected to the clearly unpopular Nexen deal in the coming weeks, the more scrutiny it will face.

The exploding national debate around theses issues puts Harper in a tough spot. On the one hand, the Prime Minister has been very clear about his policy vision for the country – and expanding energy trade to Asia has been the centre plank in this platform, underscored by a visit to China earlier this year, during which energy issues were the main topic of discussion. He has made public and private commitments to Asian trading partners and to the Canadian oil patch.

Moreover, with US leaders promising to become far more self-sufficient in oil and gas resources over the next decade by massively boosting domestic production, there is increasing pressure on Canada to develop new export markets for its fossil fuels.

And yet, as prospects for the proposed Enbridge pipeline continue to wane and opposition mounts to Nexen and this new trade deal, the Prime Minster is gambling his political future on an increasingly unpopular strategy – whether he believes it’s in the country’s best interests or not. Add to that the concerns raised by CSIS last month about threats to Canada’s national security from such deals and you have a recipe for real political problems if the PM continues down this path.

As University of Ottawa Law Professor Penny Collenette put it in the Globe and Mail’s story yesterday, with the NDP jumping on the issue, “Now it is burst wide open onto the political scene,” and becoming “a kitchen table national debate.”

That’s the last thing Stephen Harper’s energy plan needs right now.

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