Canada: International LNG Conference in BC Huge Success

B.C.’s first-ever international conference showcasing the economic growth and jobs potential of the emerging liquefied natural gas (LNG) industry was a huge success announced Minister of Energy, Mines and Natural Gas Rich Coleman.

Over 500 people attended the two-day “Fuelling the Future” conference to discuss B.C.’s LNG future. First Nations leaders, representatives from 25 B.C. communities, federal and provincial government officials, academics, and 192 companies spanning eight countries participated.

The conference profiled B.C.’s advantages for the LNG industry including access to Asian markets, a competitive tax environment, regulatory certainty and a history of safe, responsible natural gas development that makes the province a reliable place to invest and conduct business.

With five major LNG projects proposed by 2020, British Columbia is on the verge of becoming a global leader in natural gas production, generating thousands of jobs and one trillion dollars in economic activity over the next 30 years.

Four announcements were made to encourage investment and job creation:

• $120 million in provincial royalty credits in 2013 for industry to stimulate pipeline and road infrastructure investments. The Infrastructure Royalty Credit Program (IRCP) was created in 2004 and has led to the development of 82 new road-based ventures and 133 new pipeline projects accounting for more than $1.7 billion in capital investments.
• In a commercial agreement, PTP Partners (a 50/50 joint venture between Chevron Canada and Apache Corporation) committed to provide up to $200 million in financial benefits over the life of the Pacific Trail Pipelines Project to the First Nations Group Limited Partnership (FNLP). FNLP comprises 15 First Nations whose traditional territories are located along the proposed 463-kilometre pipeline route from Summit Lake, 55 kilometres north of Prince George, to the proposed Kitimat LNG facility on B.C.’s North Coast.
• The Province reaffirmed its commitment with First Nations to share the benefits of the Pacific Trails Pipeline project by providing $32 million to the FNLP to facilitate a non-equity investment in the pipeline.
• The federal government approved a 25-year export licence for shipping LNG from a Kitimat terminal proposed by a consortium headed by Shell that will allow the export of up to 24 million tons of LNG per year.

The Province announced in the throne speech the establishment of the BC Prosperity Fund to ensure communities, First Nations and all British Columbians benefit from the development of a new LNG industry.

Minister of Energy, Mines and Natural Gas Rich Coleman: “Since the release of the BC Jobs Plan, our government has aggressively promoted British Columbia’s LNG potential. The conference was an opportunity to communicate our intent to be the most competitive LNG production centre in the world because we believe this is a long-term economic opportunity that will benefit British Columbians for decades.”

Geoff Morrison, manager of B.C. Operations, Canadian Association of Petroleum Producers: “Western Canada’s natural gas producers face significant competitive challenges in North America and globally. Exporting natural gas to overseas markets is critical to ensure the continued success of Canada’s natural gas industry. This is an opportunity not only for our industry but for the country as a whole because of the economic benefits that are directly linked to natural gas development. Fuelling the Future was important because it highlighted both the challenges and opportunities facing our industry domestically and globally as we seek to diversify markets for Canadian natural gas.”

Robert Metcs, president of Havlik Metcs Limited and chief negotiator for First Nations Group Limited Partnership: “The PTP-FNLP agreement shows how industry and First Nations can work together in the development of major projects. All elements within the LNG value chain in British Columbia can look to this agreement as a possible model for future engagement with First Nations.”

Greg Kist, president, Pacific NorthWest LNG: “Everyone at this important conference wants to see benefits come from LNG to B.C. The frank and open dialogue about competitiveness and timelines we had at the LNG conference is constructive and essential if we are going to take advantage of this great opportunity.”

Greg D’Avignon, president and CEO of Business Council of British Columbia: “In a highly competitive global marketplace, the provincial government continues to take action to advance the LNG industry. The conference outlined the economic benefits for British Columbia and proved how real the opportunity is, with a global audience engaged in discussions and planning to ensure LNG will happen for British Columbia.”

John Walker, president and CEO, FortisBC: “FortisBC has been involved with LNG for more than 40 years, and we are using that expertise to create synergies elsewhere. Natural gas for transportation represents a transformative opportunity for reduced costs for operators and lowered emissions as well as benefits to FortisBC customers. The panel session at the LNG Conference was a great chance to move this conversation forward and focus on B.C.’s ability to be a leader. Our ability to realize the full potential of these opportunities will rely on continuing support of the government.”

Dr. Pascal Spothelfer, vice-president, Communications and Community Partnership, University of British Columbia: “I was pleased for the opportunity to join this forum. The Skills Development Planning panel I participated in examined key issues around human capital strategies and validated, that while we have to continue to invest in skills development, we are on the right track in BC to capitalize on the LNG opportunity.”

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LNG World News Staff, March 07, 2013; Image: Apache Canada