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

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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A median has been installed at the intersection of 40 Avenue and 176 Street. (Stephanie Cadieux Twitter photo)
Median installed at South Surrey ‘death trap’ intersection

Safety improvements made to 176 Street (Highway 15) at 40 Avenue

(Contributed photo)
PHOTOS: South Surrey Unitarians take call for racial justice to street

‘When we see it in our lives, we can either say something about it or be complicit in it’

Neilson Grove Elementary students water their new cedar tree. As part of its commitment to reconciliation, the Delta School District is planting a cedar tree at every school and district site as a way to show appreciation and respect for local First Nation culture through its Giving Tree Project. (Delta School District photo)
Cedars planted at Delta schools as part of reconciliation

‘Giving Tree Project’ a way to show respect and appreciation for First Nation culture

Surrey Eagles forward Michael Abgrall had two goals and two assists in a pair of weekend victories. (Damon James photo)
Surrey Eagles’ offence soars in pair of lopsided victories

BC Hockey League squad scores 22 goals in two wins over Powell River, Coquitlam

In this image from NASA, NASA’s experimental Mars helicopter Ingenuity lands on the surface of Mars Monday, April 19, 2021. The little 4-pound helicopter rose from the dusty red surface into the thin Martian air Monday, achieving the first powered, controlled flight on another planet. (NASA via AP)
VIDEO: NASA’s Mars helicopter takes flight, 1st for another planet

The $85 million helicopter demo was considered high risk, yet high reward

Carver Ken Sheen had almost finished work on a large cowboy carving commissioned by the City of Williams Lake to replace the original overlooking the Stampede Grounds when fire broke out Friday, April 18 at his property between Williams Lake and Quesnel. (Pine River Carving Facebook photos)
Cow boss statue destined for Williams Lake Stampede Grounds goes up in flames

Carver Ken Sheen lost the statue, all his tools and his shop in the blaze

B.C. Labour Minister Harry Bains. (Hansard TV)
B.C. moves to protect employee pay for COVID-19 vaccination

Most won’t need to take time off work, labour minister says

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Vancouver Police Department. (Black Press Media files)
Abbotsford man named as victim of fatal weekend shooting in Vancouver

Harpreet Dhaliwal, 31, killed outside of Cardero’s restaurant in Coal Harbour

New figures show Canadian housing prices outpacing those in other developed countries. (Black Press Media file photo)
Canadian housing prices fastest rising in the world

Relative to 2000, housing prices have risen by a factor of more than 2.5

Russ Ball (left) and some of the team show off the specimen after they were able to remove it Friday. Photo supplied
80-million-year-old turtle find on B.C. river exciting fossil hunters

Remains of two-foot creature of undetermined species will now make its home at the Royal BC Museum

Large gatherings of people at Kitsilano Beach on Saturday, April 17, 2021. (Walter Wells/Twitter)
Vancouver police to reassess enforcement of COVID rules at outdoor parties: mayor

No tickets were given out for a large outdoor party at Kitsilano Beach

Most Read