Prince Rupert LNG project delayed, others on track

B.C. Minister Rich Coleman says others are on track, and he's been invited to Malaysia to meet with Petronas execuives in November

Natural Gas Development Minister Rich Coleman

British Gas has signalled a delay in its plans for completion of a major liquefied natural gas project at Prince Rupert until beyond 2020, but Natural Gas Development Minister Rich Coleman says others are staying on schedule.

BG Canada president Madeline Whitaker described a “pause on Prince Rupert,” citing increasing supply of natural gas from the U.S. and elsewhere for the project that was to start construction by 2016. She emphasized in an interview with the Prince Rupert Northern View that work is continuing.

Coleman said Wednesday he hasn’t heard of any other delays in talks with LNG proponents, and he has been invited to visit Malaysia in November to meet with the CEO and board of Petronas about their large-scale plans.

“[BG’s] comments are basically relative to the financial statements and they’re just being prudent and looking forward, and that’s what they’ve told me,” Coleman said. “We haven’t seen any slowdown in progress of in any of the project development agreements we’ve been working on with these companies, so at this stage I’m still pretty confident.”

BG also has interests in U.S. sites where LNG import terminals are being converted to export for new gas reserves extracted from deep shale rock around North America. BG Group reported a 26 per cent drop in third-quarter operating profit this week, mostly from low oil prices and a decline in production from Egypt.

BG and its partner Spectra Energy received a federal export permit last year along with three other B.C. LNG project proponents. They announced a development agreement in 2012 to build a pipeline from Spectra’s hub of gas drilling and processing operations in northeastern B.C. to an 80-hectare plant site on Ridley Island near Prince Rupert.

Two other pipelines have also been proposed to supply gas to terminals at Kitimat. There are currently 18 LNG proposals for B.C., including small-scale operations using existing gas line rights of way to sites near Squamish and Port Alberni.

The B.C. government set its LNG production tax rate at 3.5 per cent in legislation introduced this month, down from a possible high of seven per cent. Finance Minister Mike de Jong said a softer international market for gas, a long-term deal to supply Russian pipeline gas to China and falling oil prices have affected the market forecast for LNG.

Coleman said proposals for global LNG production currently exceed the anticipated supply, so it’s expected that not all proposals in B.C. will go ahead.

 

Just Posted

Revelstoke cadets host 67th annual Ceremonial Review

Revelstoke’s 2458 Rocky Mountain Ranger Army Cadets hosted their 67th annual Ceremonial… Continue reading

Construction and wildfires in the area

Forecast from Environment Canada: Today: A few showers ending this morning then… Continue reading

Revelstoke artist receives second place in Kelowna juried art show

Danielle Hebert Special to the Review Revelstoke artist Peter Blackmore has been… Continue reading

Revelstoke city staff hope to create neighbourhood plan for Johnson Heights

There have been several development applications for the area

Jocelyn’s Jottings: Making an impact-collectively

Last week, I participated in the Collective Impact session hosted by the… Continue reading

PHOTOS: Elusive ‘ghost whale’ surfaces near Campbell River

Ecotourism operator captures images of the rare white orca

Michael McDonald to play in the Okanagan

The five-time Grammy Award winner has sold out Mission Hill Family Estate Winery

Police probe report of shooting as Raptors rally continues

There were reports of a woman being injured at the event that celebrates the team’s NBA title win

Top classic car show cruises back into the South Okanagan

Peach City Beach Cruise runs June 21 to 23 in Penticton

North Okanagan adds wildfire protection

“The important message we would like to get out is that there are actions that people can take to make their homes less susceptible to the threat of wildfires”

Dangerous driving in Keremeos and Vernon nets jail time

Gary Patrick Richard will serve 73 days in jail for dangerous driving and other offences

Oil and gas sector cautious as deadline on Trans Mountain decision nears

Trudeau government expected to announce whether it will approve pipeline for second time on Tuesday

Skipping school costs a dozen B.C. students chance at a new car

Cowichan’s Jared Lammi showed up and won $5,000 cheque toward vehicle, but he can’t drive

Portion of Okanagan highway closed due to vehicle incident

Accident happened on Highway 6 a few kilometres east of the Village of Lumby; detour in effect

Most Read