Well, finally, something in this country gets approved, albeit with 190 conditions.
Now, wait and listen, and you won’t have to wait very long, to the hue and cry, the accusations of betrayal by the Federal Government.
A decision by the leaders of this country has been made.
Now it’s time for the indigenous leaders in BC to step up and work with the Governments and Petronas to get this thing going, finally.
And, it’s also time for the Provincial Government to step up and hold Petronas’ feet to the fire. They’ve said they will now review the current feasibility of the project. Well, it’s a pretty good guess that they already know the costs.
If Petronas isn’t sure of the markets, then it’s certain they are looking at the short term supply and prices and that may not make sense.
I would argue that with the amount of money needed to complte this project, over $38 Billion, yes, that’s Billion dollars, the real strategy has to be for the long game in forecasting pricing.
There are probably savings in labour costs right now, largely in part because of the Alberta Oil Patch current demise, but if they wait, those cost savings will likely disappear ad even rise.
And not to be overlooked or underestimated is the priceless relationship Petronas will have to obtain a stable supply from a friendly country, and I emphasise stable and friendly.
Now, a report by the CBC says Petronas is considering selling their stake in the project. If that’s true, then the BC Government must have a say about any such sale and use that as leverage to get the project going, NOW! Here is the link to the CBC story: http://www.cbc.ca/news/business/petronas-lng-project-1.3785389
After all the delays, the hand wringing, etc., it’s time to get this project going.
As I understand it, Petronas has the unbelievable advantage owning the gas from the ground, to the processing plant, to shipping on their own ships to selling to the end customer. In other word they have created their own private supply chain
The sooner we get this project underway the sooner the economic benefits for Canadians will begin to accrue.
Over a Billion in royalties every year.
And, an oversight committee to ensure everything is operating according to the rules put forth by the conditions etc.
Listen, not everyone is going to approve of this deal. Many would have us not develop any resources in this country. But, for Canada to prosper, grow and be relevant on a global basis, we have to have economic development to drive the engine.
And in this country, that means developing natural resources. That’s what we have in abundance.
Your comments are welcome.No Fields Found.