LNG

How the Death of B.C.’s LNG Dream Could Stoke a B.C. Natural Gas Boom

Compressor station

A race to expand B.C. natural gas pipelines and infrastructure is on, signalling two possible outcomes: the death of our homegrown liquefied natural gas (LNG) export dream, and the dawn of the most ironic resource boom in provincial history.

Consider that B.C. natural gas is finally going to be exported overseas by LNG tanker — not from Pacific tidewater, but through Cheniere's new Sabine River LNG export terminal on the Gulf coast near Louisiana. In February 2017, Bloomberg reported Cheniere had entered into a supply deal that would see gas from the Montney shale formation [which straddles B.C. and Alberta] shipped from the facility.

This is a great potential outlet [for Canada],” Madeline Jowdy, Pira Energy Group’s Senior Director of Global Gas and LNG, told Bloomberg of the Cheniere LNG deal. She added that B.C. LNG projects “look like they are going to be a long time coming, if ever, in my opinion.”

First Nations Chief Hopeful For Stop to Site C, More Balanced Approach to Resource Extraction

Chief Roland Willson

Roland Willson is a practical man. As chief of the West Moberly First Nation in northeastern B.C., he’s got to be.

The natural gas industry is the main source of employment,” Willson said over coffee in Victoria this week, before heading into meetings with the B.C. NDP and B.C. Green parties. “It’s a natural resource economy up there.”

Of all the industrial activity happening on his traditional territory — ranging from fracking to forestry to coal mining — one development takes the cake: the Site C dam.

With B.C.’s new NDP-Green alliance, and its promise to send the $9 billion Site C for an independent review by the B.C. Utilities Commission (BCUC), there’s reason for Willson to be hopeful.

We are hopeful that this stupid project is going to get stopped. They’ve done nothing that can’t be undone so far. The trees will grow back. The animals will come back,” Willson. “I'm pretty confident that if it goes to the BCUC, it'll be deemed non-viable.”

This Small U.S. County Just Became a Major Roadblock for Unrefined Fossil Fuel Exports in North America

Cherry Point

Unrefined fossil fuels won’t be shipped out of a small Washington State export facility at Cherry Point any time soon, due to a temporary moratorium imposed by the Whatcom County Council.

The moratorium positions Cherry Point as a major roadblock for both U.S. and Canadian companies scrounging for export facilities to ship unprocessed oil, gas and coal to overseas markets.

We are determined to use whatever legal tools we have to address climate change and to protect good refining jobs,” Barry Buchanan, council chair in Whatcom County, told DeSmog Canada.

Amid dwindling community-level support for fossil fuel infrastructure and after the U.S. lifted a 40-year old oil export ban, Cherry Point has been flooded with export permit applications for LNG, propane, coal and bitumen.

Six Troubling Subsidies That Support B.C.’s LNG Industry

By Maximilian Kniewasser, Pembina Institute.

Four years ago, the government of British Columbia bet big on the prospect of liquefied natural gas (LNG) exports creating overseas markets for the province’s shale and tight gas resources.

LNG development would deliver 100,000 jobs, a $100-billion Prosperity Fund, and over $1 trillion in economic activity, British Columbians were told. Since then, however, the economics of LNG have shifted, and the predicted LNG boom has yet to materialize.

In order to attract LNG investment, the provincial government has provided myriad incentives, exemptions, and direct transfers to the natural gas industry. Financial incentives that shield the emissions-intensive industry from current and potential future increases in carbon costs are of particular concern to the Pembina Institute.

For one thing, these measures lessen the incentive to reduce carbon pollution — as the world increasingly demands that polluters pay for their emissions. Furthermore, such incentives use scarce public dollars to support the fossil fuel sector at a time when government should be removing barriers to clean innovation and investing in green jobs.

Here is an overview of six carbon-related incentives that benefit LNG projects and the natural gas industry in B.C.

A Dam Big Problem: Fracking Companies Build Dozens of Unauthorized Dams in B.C.'s Northeast

A subsidiary of Petronas, the Malaysian state-owned petro giant courted by the B.C. government, has built at least 16 unauthorized dams in northern B.C. to trap hundreds of millions of gallons of water used in its controversial fracking operations.

The 16 dams are among “dozens” that have been built by Petronas and other companies without proper authorizations, a senior dam safety official with the provincial government told the Canadian Centre for Policy Alternatives, which began investigating the problem in late March after receiving a tip from someone with knowledge of how widespread the problem is.

Two of the dams built by Progress Energy, a wholly owned subsidiary of Petronas, are towering earthen structures that exceed the height of five-storey apartment buildings. Petronas has proposed building a massive liquefied natural gas (LNG) plant in Prince Rupert, which if built would result in dramatic increases in fracking and industrial water use throughout northeast B.C.

The two dams are so large that they should have been subject to review by B.C.’s Environmental Assessment Office (EAO). Only if a review concluded that the projects could proceed would the EAO have issued a certificate, and only then could the company have moved on to get the necessary authorizations from other provincial agencies.

But nothing close to that happened because the company never submitted its plans to the EAO before the dams were built.

Fact Checking Christy Clark’s LNG Claims

Christy Clark LNG

For years, the B.C. government has touted the benefits of developing a liquefied natural gas (LNG) export industry — and while some of those benefits may be legit, one of them almost certainly isn’t.

That’s the claim that exporting natural gas from B.C. will somehow result in emissions reductions in China.

Let’s back up for a second.

Exporting LNG involves first fracking for gas in B.C.’s northeast, a process which causes earthquakes, uses epic amounts of fresh water and leaks the potent greenhouse gas methane into the atmosphere at a rate 2.5 times higher than what the B.C. government has been admitting.

Are B.C. Taxpayers Paying $3.5 Billion for Massey Bridge to Make Room for Coal, LNG Exports?

Massey Bridge

This article originally appeared on The Tyee.

There are places one can sit and consider the past and future with equal clarity. On this October day, Harold Steves, 79, an outspoken environmentalist and Richmond city councillor, looks from the riverbank at the end of Richmond’s Rice Mill Road.

Directly in front of him is the Fraser River, and directly below his feet lies Highway 99’s George Massey Tunnel. Given a $22-million seismic upgrade a decade ago, it was said by then-B.C. transportation minister Kevin Falcon that the tunnel was safe and a future twinning would eliminate the twice-daily commuter bottleneck.

But if today’s B.C. government has its way, work will start late this year on a massive $3.5-billion bridge, financed through a Public-Private Partnership (P3), to be completed by 2022.

Which means a stiff toll to pay off private creditors in the years ahead. Which will also mean that the perfectly safe, perfectly good tunnel will be removed.

BC Liberals Locked In Huge Subsidies to Oil and Gas Donors: Report

Christy Clark and Petronas CEO Tan Sri Dato’ Sahmsul Azhar Abbas

The B.C. government is subsidizing the LNG industry to the tune of hundreds of millions of dollars — and British Columbians are going to pay the price, according to a new report by Sierra Club B.C.

The report, Hydro Bill Madness: The BC Government Goes For Broke With Your Money, lays out the impact of tax breaks, subsidies and reduced electricity rates negotiated by industry.

Power subsidies to even just two or three of the proposed LNG plants could amount to hundreds of millions of dollars per year,” reads a press release accompanying the report.

Two LNG export terminals have been approved in B.C. — Petronas’ Pacific Northwest LNG on Lelu Island near Prince Rupert and the Woodfibre LNG plant in Howe Sound near Squamish. Another 18 are proposed.

Both companies have been major donors to the B.C. Liberal party, which has ruled the province for 16 years and faces an election on May 9.

Malaysian-owned Pacific Northwest LNG donated more than $18,000 to the B.C. Liberals since 2014, while Indonesian-based Woodfibre has found itself in the midst of a growing scandal over illegal donations.

Four Decades and Counting: A Brief History of the Site C Dam

Arlene Boon

This is a guest post by Ray Eagle.

Many British Columbians may not realize that the $9 billion Site C dam, currently under construction on the Peace River, has a 46-year back-story.

B.C. Hydro began engineering studies for Site C back in 1971. In the early 1980s B.C. Hydro went before the newly formed British Columbia Utilities Commission (BCUC), created “to ensure that ratepayers receive safe, reliable, and nondiscriminatory energy services at fair rates from the utilities it regulates, and that shareholders of those utilities are afforded a reasonable opportunity to earn a fair return on their invested capital.”

In November 1983, the BCUC issued a 315-page summary that stated the dam was not needed at that time, while at the same time criticizing B.C. Hydro’s forecasting ability.

Tweet: “The Commission examined the methodology of @BCHydro's forecasting…” and it didn’t go so well in 1983. Or now still http://bit.ly/2nhohVbThe Commission examined the methodology of Hydro's forecasting … and concluded that, while significant improvements have been made, further improvements can and should be made to improve reliability,” the report read.

Behold The Allure of the Energy Megaproject

Christy Clark LNG

This article originally appeared on The Tyee.

Imagine if you lived in a nice quiet community of about 30 people, and the Chinese government got permission to plunk a $20-billion liquefied natural gas (LNG) plant on your doorstep.

Holy snapping duck shit! Chances are you’d want a pretty strong say in whether that could or should happen, under what conditions, with whose permission — and you’d want a very clear, objective analysis of the costs and benefits, and the risks, to you, your family, your neighbours, not to mention the physical place that would be so massively disrupted by such a project — you know, the place you currently call home.

Most of us don’t live in nice quiet communities of 30 people — or maybe we do. On my residential block in East Vancouver, I’d say that (based on the census’s estimated average of 2.6 people per household in Vancouver) there are 30 people on my side of the street alone. Maybe you live in an old apartment building with 30 people in it total; maybe a condo with 30 people on your floor. Anyway, 30 people isn’t a lot, but $20 billion is, and right now, on Digby Island — right across the harbour from Prince Rupert in northern B.C. — the tiny community of Dodge Cove is staring down a project that would pretty much destroy it.

It’s become a “sacrifice zone” — yet another bucolic corner of the world at risk of being flattened on the anvil of progress.

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