Media Statement: September 25, 2014
Petronas LNG Announcement Highlights Need for Economic Back-Up Plan
For Immediate Release
Victoria B.C. – Andrew Weaver, MLA for Oak Bay-Gordon Head and the Deputy Leader of the BC Green Party, says that Petronas’ threat to call off its $10-billion LNG project is another clear demonstration that British Columbia desperately needs an economic back-up plan.
“We have a government that has gone all-in on LNG,” says Weaver. “We have an official opposition that is essentially parroting the government in an attempt to appear job-friendly. The fact is, Petronas’ announcement has made clear what neither the government nor the opposition is willing to admit: That the promise of a ‘generational opportunity’ in LNG is a pipedream and we desperately need a back-up plan for when it fails.”
Petronas’ CEO, Shamsul Abbas, said that the development of an LNG export industry in Canada was over 40 years behind the United States. His statement echoes the conclusions of a recent Peters and Company report that noted that the U.S. Gulf Coast is now likely the most efficient place to construct LNG facilities in North America. In fact, according to regulatory filings, it would cost roughly twice as much to construct a facility in Canada as it would to build one on the U.S. Gulf Coast.
Mr. Abbas was clear when quoted in the Financial Times: “Until investors cross the final investment line with an economically viable project, they remain just potential investors on paper”.
“I’ve been saying this since before the last election – the economics simply aren’t there for what the government is promising. It’s a race to the bottom to sell off our natural gas resources, at the expense of other opportunities.”
While, the government continues to double-down on LNG existing industries in B.C. have been neglected. A few years ago, B.C. was investing heavily in reliable, high-paying and up-and-coming sectors like the technology and renewable energy sectors. However with Premier Clark’s new singular focus on LNG, these sectors lack the certainty needed to continue to thrive. Anytime someone questions their approach, the government responds by saying “trust us.”
“We can no longer accept the government’s ‘trust us’ mantra on LNG development. Jobs and our economy are on the line here and British Columbians deserve to know that their government has a back-up plan for when the LNG dream fails.”
Mat Wright – Press Secretary, Andrew Weaver MLA
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