Rich Coleman

Coleman still pumped for LNG despite report’s caution

Think tank warns B.C. needs 'realistic expectations' on hoped-for natural gas bonanza

Deputy premier Rich Coleman says he’s not apologizing for talking up the liquefied natural gas (LNG) windfall awaiting B.C. and dismissed a report that criticizes the B.C. government for being overly optimistic.

“I don’t mind being accused of being an optimist,” he said in an interview Wednesday. “I was accused of that last year when everybody thought we were not going to ever win another election in B.C.”

The minister responsible for natural gas development spoke to the Surrey Board of Trade as part of a panel on LNG.

He was reacting to a critical report this week from the Calgary-based Canada West Foundation, which cautioned B.C. needs to adopt “realistic expectations” and understand the case for creating a major new LNG industry is solid but not guaranteed.

Titled “Managing Expectations,” the report cautions other LNG projects in Australia are further advanced and others around the world pose a threat of competition that will push down potential revenues.

“B.C. is coming late to the party,” it says. “Expectations of just a year ago may be tough to deliver.”

The report also notes the proponents in B.C. face potentially large costs relative to other areas to build new pipelines to the coastal LNG plants that would chill and liquefy shale gas for export by tankers to Asia.

The think tank recommends the province move fast to outmaneuver competitors but also prepare for a “more modest natural gas boom” in case the industry doesn’t blossom as fast as Victoria hopes.

“I get a kick out of that because at the same time they also say there’s a huge opportunity in British Columbia for liquefied natural gas,” Coleman said of Canada West’s findings.

In his address to the business audience, he said B.C. has 150 years worth of natural gas reserves to sell that promise to “change the face of the province” like no other opportunity since the years of Premier W.A.C. Bennett.

Coleman said five LNG plants would be equivalent to adding $1 trillion to the B.C. economy over 30 years, making the province debt-free within 15 years and creating a $100-billion prosperity fund for future programs.

He also insisted B.C. has advantages for LNG, among them its shipping proximity to Asia and the cool temperatures of the north coast, which mean cheaper costs to supercool natural gas compared to hot climes like Perth, Australia.

Coleman said a partnership led by Shell on a potential Kitimat LNG plant will see $1 billion spent just in the process of making the final investment decision.

The nearby Chevron-Apache LNG partnership has already spent more than $500 million and “taken the top off a mountain” as part of site preparation work.

“These guys are spending real money in real places and they’re dead serious about being here,” he said of the various proponents.

He said the capital investment for five plants could hit $100 billion, far exceeding the biggest recent private investment of the new $3.3 billion RioTinto Alcan aluminum smelter in Kitimat, and creating more than 100,000 jobs.

That work can extend across the province, Coleman said, noting remote camps are already being built by Britco at its plants in Langley and Agassiz.

Trades training to fit the future needs are a major challenge – presuming the projects go ahead.

A key to ensuring they do, Coleman said, is assuring foreign proponents that they will have business certainty in B.C.

The government will soon decide its tax and royalty structure and Coleman said that will be legislated to assure operators that it’s “written in stone” and no future government will try to extract more money from them.

Just Posted

Oak Bay parents expect to hear details on childcare spaces

School Board officials to provide more details at public meeting Thursday

City of Victoria to start charging illegal short-term rental operators

Anyone without a proper business license could face $500 per day in fines

VIDEO: Oak Bay High robots compete in international competition

Local school hosts league competition Saturday

Crown to appeal acquittal of Victoria masseur accused of sexual assault

BC Prosecution Service review of the ruling found ‘the judgment revealed errors of fact and law’

Bike thief steals elderly man’s electric-assist bike

Bicycle is a black Raleigh Sprite IE Electric stolen from 600-block of Toronto Street

What are the worst parking spots in Victoria?

We are looking for the worst places in the city to park and need your opinion

Charges upgraded against mother of murdered B.C. girl

Kerryann Lewis now faces first- rather than second-degree murder in the death of Aaliyah Rosa.

UPDATE: Injured firefighter in stable condition

Kelowna fire crews responded to a blaze at Pope’sGallery of BC Art & Photography on Friday

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Arrest made after historic B.C. church hit by arson

The fire at the 150-year-old Murray United Church in Merritt was considered a possible hate crime

B.C. dangerous offender in court for violating no-contact order, sends letter to victim

Wayne Belleville was shocked to see a letter addressed to him from his shooter, Ronald Teneycke

Man blames his loud car radio, sirens for crash with B.C. ambulance

Tribunal rejects bid to recoup ICBC costs after crash deemed 100-per-cent his fault

Ferry from Port Hardy to Bella Coola expected to set sail this summer

Its first in-service route will sail in central coast waters on May 18, 2019.

Fashion Fridays: Inspirational gym outfits

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Most Read