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Malcolm

Petronas cancels Pacific NorthWest LNG project in Canada

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I wonder what will take the place of the many lost jobs, Government handouts?

Petronas cancels Pacific NorthWest LNG project in Canada
The Canadian LNG project would have been Petronas' largest foreign investment 

A controversial liquefied natural gas (LNG) project planned for Canada's west coast has been cancelled. 

Pacific NorthWest LNG announced the project would not proceed "amidchangesin market conditions". 

Canada authorised the project last September despite concerns over its potential contribution to greenhouse gas emissions.

The major energy project would have seen LNG exported to emerging Asian markets.

The cancelled initiative was one of the largest resource development initiatives in the country.
Tuesday's decision was made by Petronas, the Malaysian oil and gas company leading the project, as well as its partners. 

"We are disappointed thatthe extremely challenging environment brought about by the prolonged depressed pricesand shifts in the energy industry have ledus to this decision, said Anuar Taib,chairman of the Pacific NorthWest LNG board said in a statement. 

Mr Taib also said Petronas and its partners will continue to develop natural gas assets in Canada. 

The C$36 bn ($28bn/£22bn) project would have seen a natural gas liquefaction and export terminal constructed on British Columbia's northern coast, as well as a new pipeline. 

The terminal would have been built on Lelu Island, which sits at the mouth of the Skeena river near Prince Rupert, British Columbia.

There were worries over the potential threat to an important salmon habitat alongside concerns over greenhouse gases. 

The controversial project sparked protests by some of the First Nations in the region. Other communities supported the LNG terminal because it would have injected millions of dollars into the local economy and created jobs. 
 

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Supreme Court to issue landmark rulings on Indigenous relationship with energy sector

Top court to rule on consultation process over energy projects

By John Paul Tasker, CBC NewsPosted: Jul 25, 2017 6:19 PM ET Last Updated: Jul 25, 2017 6:19 PM ET

Jerry Natanine, former mayor of Clyde River, Nunavut, gestures outside the Supreme Court in Ottawa. Inuit from communities across Canada have backed a court case that could redefine the government's constitutional duty to consult.

Jerry Natanine, former mayor of Clyde River, Nunavut, gestures outside the Supreme Court in Ottawa. Inuit from communities across Canada have backed a court case that could redefine the government's constitutional duty to consult. (Stan Williams/Greenpeace)

The Supreme Court will deliver two landmark rulings Wednesday that could lead to fundamental changes for Canada's energy sector and its relationship with Indigenous Peoples.

At issue is the Crown's constitutional obligation to consult with Indigenous Peoples before approving the construction of a pipeline or allowing a natural resources project to proceed. The top court is expected to give further details on just how much consultation is required, and who should be doing it.

Energy companies have signalled they are concerned that a longer, more arduous consultation process could stymie projects and the jobs that come with natural resources development.

Some First Nations and Inuit activists have said that the National Energy Board, the country's energy regulator, has inadequately consulted with their communities before approving projects. There have also been questions as to whether NEB members are best equipped to represent the federal government in these sorts of consultation talks with Indigenous Peoples.

There are two cases at issue. The first was brought by Inuit living in the small Nunavut community of Clyde River, who are opposed to offshore seismic testing in Baffin Bay. A Norwegian consortium wants to conduct the testing so it can search for oil and gas.

In Clyde River people rely on hunters for food year round. They argue seismic testing could put their livelihoods at risk. (Elyse Skura/CBC)

The Inuit have said the NEB should never have approved the permit for this type of testing — which uses sound wave technology to see if there are reserves under the sea floor — because of the possibility it could disrupt fish and sea mammals the community relies on for food. The Supreme Court will rule on whether the NEB adequately consulted Inuit in the area when it gave the green light to the testing. (The consortium has delayed testing three times because of the legal action.)

Jerry Natanine, Clyde River's former mayor and a leading voice against the testing, said the NEB process was a foregone conclusion.

"When they were going up there telling us what they were going to do, it wasn't a consultation," he said. "They just told us what they were going to do and didn't answer our questions."

Federal Court has sided with government in the past

The other case, which the Supreme Court will rule on at the same time, has been brought by First Nations living on the Chippewas of the Thames reserve near London, Ont.

Advocates from that community have said the NEB fell short in its consultation efforts with Indigenous Peoples before approving a permit for Enbridge, the pipeline giant, to alter one of its major holdings, Line 9. The company got the green light to reverse the direction of that heavy crude pipeline; it has been in active service since 2015 carrying oil from Western Canada to refineries in Quebec.

Myeengun Henry

Chippewas of the Thames Chief Myeengun Henry says his community is taking a big risk by pursuing a Supreme Court case against Enbridge. 'We’re just trying to stop a very dangerous situation,' he said. (Chippewassolidarity.org)

In both cases, Ottawa has argued the NEB was qualified to stand in for the Crown and that Indigenous Peoples had more than enough opportunities to express their concerns about the projects in question. The Federal Court of Appeal has agreed and sided with the government in both cases.

The Supreme Court has previously held that the Crown has a duty to consult, and, where appropriate, accommodate Indigenous Peoples when the Crown engages in activity that might adversely affect Aboriginal or treaty rights. The courts have generally left it to the government to design the consultation process.

Energy sector uncertainty

The decisions will come amid a time of uncertainty for Canada's energy sector, and further threats to the federal government's natural resources agenda.

The Chippewas of the Thames argue that they weren't properly consulted about Line 9, which carries crude oil through their traditional territory. (Paul Borkwood/CBC)

On Tuesday, proponents of massive $11-billion Pacific NorthWest LNG project on B.C.'s coast pulled the plug, less than a year after the Liberal government gave the green light.

The Trans Mountain pipeline expansion, which will carry nearly a million barrels of oil a day from Alberta to B.C. for export to Asia, is also hanging in the balance, as new B.C. Premier John Horgan has long opposed its construction. Trans Mountain was approved by the prime minister and his cabinet last November, paving the way for a twinned pipeline that will alleviate capacity issues and help Canada's oil producers collect world prices.

The court cases come amid a push by the Liberal government to reform the National Energy Board and "modernize" its operations. An expert panel recently suggested the NEB be scrapped, and be replaced with two new agencies with many of regulatory functions moved from Calgary to Ottawa.

The panel also called for "real and substantive" participation from First Nations communities in the decision-making process.

"Canadians told us that they expect to see their energy regulator fully realize nation-to-nation relationships with Indigenous Peoples. We agree," the report said.

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deicer, I think the real reason is because of delays in approval etc. they missed the boat that others jumped on.

Here is a story re the impact of the decision.

July 25, 2017 10:31 pm
Updated: July 26, 2017 12:26 am

Disappointment on B.C.’s north coast as Pacific NorthWest LNG scrapped

Tue, Jul 25: What was supposed to be the biggest investment in the province’s history is dead after Petronas pulled the plug on its $36-billion LNG mega-project on B.C.’s north coast. Keith Baldrey has more on the decision and reaction.

The decision by Malaysian energy giant Petronas to pull the plug on a proposed multi-billion dollar LNG project on B.C.’s north coast is being met with disappointment from communities in the area.

The Pacific Northwest LNG board announced on Tuesday that it would not proceed with a $36-billion export terminal at Lelu Island, near Prince Rupert.

The company cited depressed global prices for natural gas and shifting market conditions for the decision.

In Port Edward, the community nearest to where the plant would have been, the loss is personal.

“I am disappointed. I’d hoped it would go forward,” said Mayor Dave MacDonald.

MacDonald said many in the community have left to find work in Fort St. John and Fort McMurray, and he’d hoped the plant would boost the economy and pull families back together.

“We believe in working with our partners in the whole area, Prince Rupert and the native villages, we were hoping the whole area was going to expand.” 

In Terrace, about an hour east of the proposed site, the decision is being seen by some as a major blow.

Carol Leclerc, the community’s mayor, said the project held the promise of long-term, stable jobs.

“Operational jobs, [there] was probably 300 or 400 jobs for the next 25 to 30 years or longer, you know it’s really disheartening,” she said.

“What happens in Prince Rupert and Port Edward impacts Terrace and whatever happens in Terrace also impacts communities in the northwest. It’s just really sad, there was lots of hope.”

In Kitimat, about 60 kilometres to the south, reaction has been more muted.

Mayor Phil Germuth admits there were some in the community who were banking on a potential job.

But he said the decision to pull out won’t sink the region’s economy.

“It doesn’t affect our projects here. The three projects, you know your big ones — Pacific Northwest, LNG Canada, and Kitimat LNG. They weren’t really in competition with each other. For one of them to have to make that decision doesn’t affect as much here.” 

Germuth said he’s more concerned about competition with the established players in the LNG market, like the U.S. and Australia, that have already laid the groundwork for major projects.

“They already have pipelines going to some of these facilities, they have a lot of the infrastructure in place. Those are the ones that we are actually competing with on a cost basis of trying to get things up and running.”

Earlier Tuesday, NDP Energy Minister Michelle Mungall said the government remained committed to the nearly 20 other B.C. LNG projects still on the drawing board.

She said she would be meeting with stakeholders to reassure them that the province remains open for business.

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Looks like the $$$ and Jobs that could have been in BC could be heading South.

Canadian firm applies to build $10B Jordan Cove LNG project in Oregon

Project includes a liquefied natural gas terminal and a 370-kilometre natural gas pipeline

The Canadian PressPosted: Sep 23, 2017 10:08 AM MT Last Updated: Sep 23, 2017 10:08 AM MT

Calgary-based Veresen Inc. says its Jordan Cove project is now estimated to cost about US$10 billion to build, up from US$7.5 billion under its previous proposal.

Calgary-based Veresen Inc. says its Jordan Cove project is now estimated to cost about US$10 billion to build, up from US$7.5 billion under its previous proposal. (The Canadian Press)

The Canadian company whose proposal to build an LNG export terminal in Oregon was derailed by regulators last year has resubmitted its application for a bigger, more expensive project.

Calgary-based Veresen Inc. says its Jordan Cove project is now estimated to cost about $10 billion US to build, up from $7.5 billion US under its previous proposal, and it would have capacity of 7.8 million tonnes per year, up from six million.

The project includes a liquefied natural gas terminal in Coos Bay, Ore., and a 370-kilometre pipeline that will bring natural gas originating in the U.S. Rockies and British Columbia from a southern Oregon hub to the terminal.

The U.S. Federal Energy Regulatory Commission denied the Jordan Cove project last year because it said demand hadn't been proven and negative impacts on landowners outweighed the public benefits.

But in February it said developers could resubmit their application.

Altacorp Capital analyst Dirk Lever says a soon-to-close $9.7-billion friendly takeover of Veresen by Pembina Pipeline stands to improve chances the LNG project will proceed.

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The experts guessed we'd have 200 years of energy available because of fracking technology, but as we can see, the real objective was to deplete the reserve through exportation much quicker, which means the industry & their government mislead the public. It should be clear to all now that the real objective was instant profit at the expense of the future economy.

 

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Here we go again, Canadian Project shut down and the US jumps into the breach.

Alaska signs gas pipeline project deal with China

Project could cost $43 billion, with goal of pipeline operating by 2024 or 2025

The Associated PressPosted: Nov 09, 2017 9:00 AM CT Last Updated: Nov 09, 2017 9:00 AM CT

The state of Alaska took a major step toward realizing a long-sought pipeline to move natural gas from the North Slope to Asia, siding with interests from China after major oil companies stepped back from the project.

The agreement Alaska Gov. Bill Walker signed Thursday in Beijing with Sinopec, China Investment Corp., and the Bank of China does not guarantee a pipeline will be built, but it gives the lingering liquefied natural gas project a jolt of life.

"This is the market responding, and we're very, very pleased with that," Walker told reporters in a teleconference from Beijing.

The agreement was signed as both U.S. President Donald Trump and Chinese President Xi Jinping watched. No financial terms were released, but it's been estimated that the project could cost $43 billion.

The agreement means all parties will work on various aspects of the project, including marketing and financing with a  status check in 2018.

The goal, Walker said, is to have definitive contracts signed by the end of 2018. Construction would start the following year, with the goal to have the pipeline operational by 2024 or 2025.

'Long courtship'

Representatives of Sinopec and the Bank of China toured operations on the North Slope and visited facilities in Anchorage before making their decision, which had to be approved by the Chinese government.

"This has been a long courtship with these folks," said Keith Meyer, the president of the Alaska Gasline Development Corp., the state-sponsored entity advancing the project. Negotiations began in May, he said.

In the agreement, Sinopec would be the customer buying the gas, the bank would be the lender for Sinopec and China Investment Corp. would be an investor if there were to be an equity investment in the project. The Alaska corporation would retain majority ownership, Meyer, said.

About 75 per cent of the LNG would go to China, with Alaska retaining 25 per cent for other regional markets in Asia, including Japan, South Korea and Vietnam.

"I look forward to seeing the details, but at first glance, this joint development agreement is very encouraging for the thousands of Alaskans who never lost hope that a natural gas pipeline could one day become a reality," Alaska House Speaker Bryce Edgmon, a Democrat, said in a statement.

"A pipeline project will bring jobs, investment, and, perhaps most importantly, a renewed sense of hope that Alaska's best days are ahead of us, not behind."

Project would rival trans-Alaska oil pipeline

The pipeline as envisioned would rival the famed trans-Alaska oil pipeline, a major building project of a generation ago.

The natural gas pipeline is intended to tap into the rich natural gas reserves on the North Slope. Similar in length to the oil pipeline, it would transport the gas 1,287 kilometres to the coast on the Kenai Peninsula, where it would be liquefied and shipped to Asia.

Such a pipeline has been a dream for Alaskans for years, seen as a way to provide economic certainty as oil production from the North Slope declines.

Estimates have put proven gas reserves on the North Slope overall at 35 trillion cubic feet. Alaska could provide a generation's worth of liquefied natural gas to China, Walker told the Chinese president when Xi stopped in Anchorage on a layover in April.

Millions have been spent on a pipeline project, which has been marred in recent years by changes in direction, waning interest among state legislators and low natural gas prices.

The state took lead on the project with the blessing of major oil companies, who plan to provide gas to the project from their leased North Slope fields but focused priorities elsewhere. Walker has said this would be a make-or-break year for the proposed project, and he's been working to secure commitments from countries in Asia to buy the gas or be partners in the project.

The state opened an office in Tokyo to help market its gas, and Walker himself has travelled abroad looking for commitments.

This comes on the heels of a June announcement that the state-owned Alaska Gasline Development Corp. signed an agreement with the Korea Gas Corp., establishing a cooperative framework for the development of Alaska's natural gas infrastructure.

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And of course there will be a loss of jobs here in Canada.

Tourmaline Oil chops 2018 budget by half a billion dollars due to low gas pricesTourmaline Oil Corp. (TX:TOU) says it is cutting its 2018 capital spending budget by half a billion dollars because of persistantly low Alberta natural gas prices. THE CANADIAN PRESS/HO

By: Staff The Canadian Press Published on Thu Nov 09 2017 08:52:02

CALGARY — Tourmaline Oil Corp. (TSX:TOU) says it is cutting its 2018 capital spending budget by half a billion dollars because of persistently low natural gas prices.

The Calgary-based oil and gas company says it will dial back production growth to 10 per cent from a planned 15 per cent next year as it spends $1.08 billion, down from previous plans to spend $1.52 billion.

The announcement signals a major change in strategy for the fast-growing company founded by industry veteran Mike Rose in 2008 with the goal of aggressive growth in three oil and gas producing regions in northwestern Alberta and northeastern B.C.

It says it intends to keep natural gas production flat at about 1.35 billion cubic feet per day in 2018 until the supply-demand outlook in Canada and North America is clarified and there is an improvement in the gas price outlook.

Tourmaline says it earned $51 million or 19 cents per share in the three months ended Sept. 30, more than double the $25 million or 10 cents per share it posted in the same period of 2016.

Production climbed 40 per cent to 237,000 barrels of oil equivalent per day in the same time frame with most of the gain in crude oil and natural gas liquids output.

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