Media Statement – May 20, 2015
Green MLA calls Pacific NorthWest LNG-BC Government MOU “shocking and irresponsible”
For Immediate Release
Andrew Weaver, MLA for Oak Bay-Gordon Head and Deputy Leader of the B.C. Green Party, says that the signing of the Memorandum of Understanding between the B.C. Government and Pacific NorthWest LNG is a truly shocking and irresponsible act.
“This is the act of a desperate government,” says Andrew Weaver. “For over two years I’ve been saying the same thing. Oversupply in the global natural gas markets means that the economics simply do not support the Liberal’s irresponsible LNG hyperbole. Rather than acknowledging the folly of their pre-election promises, they take the reckless and desperate approach of essentially giving away a resource while simultaneously proposing to hamstring future governments from looking out for the interests of British Columbians.”
The Memorandum of Understanding, signed between Pacific NorthWest LNG and the B.C. Government is a precursor to the controversial project development agreements that are designed to give LNG producers more certainty by making it costly for future governments to change royalty and tax rates.
The project development agreements are being used to get around the fact that by law a government cannot impose limitations on the powers and actions of future governments. They can, however, make it costly, both financially and politically, for a future government to withdraw from an existing agreement.
“By signing this agreement, the government is effectively putting the interests of one corporation ahead of British Columbians. This government has already rewritten environmental laws, rewritten the way royalties are assessed on industry, and advanced a very favourable tax regime for the industry. Now they are hamstringing future governments. British Columbians are getting a raw deal from a government that is putting politics ahead of good economics. They should be outraged.”
Ironically, this latest event in B.C.’s ongoing LNG debacle comes at a time with the Asian LNG June spot price averaging around $7.12 per million BTU. A recent Macquarie Private Wealth analysis pinned the break even price for BC LNG at between $8.37 and $9.77 per million BTU.
Press Secretary – Andrew Weaver MLA
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