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

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

Black trucks figure prominently in Shuswap thefts

Chase RCMP investigating stolen vehicles from several communities

‘Suspicious male’ not a threat, but police appreciate report

Salmon RCMP commend girls and bystanders on their vigilance

Contenders to return for Okanagan tour

Valdy, Gary Fjellgaard and Blu and Kelly Hopkins will perform at six venues

Former Vernon man guilty of Japanese exchange student’s murder

Natsumi Kogawa was found at empty heritage mansion shortly after she was reported missing in 2016

Cough cough: Kelowna MLA gets flu shot to prep for the cold season

Steve Thomson got his flu shot from Lakeside Medicine Centre Friday

Shuswap’s young inchthyologists marvel at fish return

Sorrento Elementary students visit the Salute the Sockeye event at Tsútswecw Provincial Park.

Celebration salutes 60 years of medical care provided at Salmon Arm hospital

Hospital lauded for continuing advancements in top-notch care by B.C. health minister

Election 2018: Jay Simpson, candidate for Columbia Shuswap Regional District, Area F

One of two candidates vying to represent the North Shuswap provides a bio, talks about the issues.

Election 2018: Will Hansma, candidate for Columbia Shuswap Regional District, Area F

One of two candidates vying to represent North Shuswap provides a bio, talks about the issues.

‘Mom, I’m in trouble:’ Canadian faces 10 years for alleged graffiti

Brittney Schneider, another tourist caught spraying message on walls of Tha Pae Gate in Thailand

Feds consulting on national anti-racism strategy behind closed doors

Heritage Minister Pablo Rodriguez says people still face systemic racism in some communities

Election 2018: Nancy Egely, candidate for Columbia Shuswap Regional District, Area C

One of two candidates vying to represent South Shuswap provides a bio, talks about the issues.

Election 2018: Paul Demenok, candidate for Columbia Shuswap Regional District, Area C

One of two candidates vying to represent South Shuswap provides a bio, talks about the issues.

Most Read