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.

 

Just Posted

Greater Victoria is ranked fourth out of 27 Canadian cities for the best places for youth to work in, according to a RBC report. (Black Press Media file photo)
Greater Victoria among best Canadian cities for youth to work in, says RBC report

Region ranked fourth out of 27, behind Vancouver, Hamilton and Edmonton

Saanich police reported an increase in violent crimes and a drop in traffic incidents in the first three months of 2021 compared to the final quarter of 2020. (Black Press Media file photo)
Saanich police report increase in violent crimes during first quarter of 2021

More domestic violence, less property crime and distracted driving compared to end of 2020

Donna Brower (left) and her daughter Carol Anne Penner, members of the Silver Swans – a quilting group of 12 ladies who meet at the Swan Lake Christmas Hill Nature Sanctuary – with a mountain of masks they sewed. (Photo submitted by Julia Dawson)
Saanich quilting group nabs first prize in Volunteer BC photo contest

Silver Swans sewing club raised more than $12,000 for Swan Lake nature sanctuary

The City of Victoria is proposing a northern contraction from Haultain Street to Bay Street with a western contraction from Cook Street to Chambers Street for Fernwood. (Illustration/Google Maps)
Community association calls for input on Victoria boundary changes

City of Victoria proposes changes to neighbourhood borders

After seizing a handgun from his home on Tuesday, Victoria police arrested a wanted man on Wednesday after he fled officers on his bike. (Black Press Media file photo)
Man wanted on several warrants flees Victoria officers on bike

He was arrested after a brief struggle, transported to hospital with injuries

B.C. Labour Minister Harry Bains in the B.C. legislature, May 13, 2019. (Hansard TV)
VIDEO: B.C. to provide 3 days of sick pay for COVID-19 absences

Province will support employers on cost, labour minister says

A Canadian flag patch is shown on a soldier’s shoulder in Trenton, Ont., on Thursday, Oct. 16, 2014. The Canadian Forces says it has charged one of its members in the death of an army reservist from British Columbia during a training exercise at a military base in Alberta last year. THE CANADIAN PRESS/Lars Hagberg
Canadian Forces member charged in death of army reservist during training exercise

Cpl. Lars Callsen has been charged with one count of negligence

Health Minister Adrian Dix looks during a press conference in the rotunda at Legislature in Victoria, B.C., on Wednesday May 6, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. to use remaining AstraZeneca vaccine for 2nd doses

Health officials say the change is due to the limited availability of the vaccine

A youth plays basketball in an otherwise quiet court in Toronto on Saturday April 17, 2021. The Canadian Civil Liberties Association is urging the federal and provincial governments to fight COVID-19 pandemic by focusing on proven public health policy interventions including paid sick leave, and education rather than punitive enforcement measures. THE CANADIAN PRESS/Chris Young
Provinces issued more COVID-19 tickets during 2nd wave: CCLA report

‘A pandemic is a public health, not a public order, crisis,’ reads the report

Capt. Arpit Mahajan of the Canadian Forces Snowbirds - Snowbirds 2 - shows off his ‘Jenn Book’ dedicated to Capt. Jennifer Casey. Zoom screenshot
Homecoming for B.C.-raised Snowbirds pilot training in the province

Capt. Arpit Mahajan flies Snowbird 2 in his first year as a solo pilot with the team

A nurse asks screening questions at an immunization appointment in Nanaimo earlier this year. (Shawn Wagar/Island Health photo)
Island Health appreciates nurses answering the call in challenging times

Health authority draws attention to National Nursing Week

BC Housing minister David Eby. (THE CANADIAN PRESS/Chad Hipolito)
Eby jabs back against Penticton mayor’s ad urging BC Premier to intervene in shelter dispute

Eby writes that Penticton’s ‘serious’ social issues won’t improve under leadership of the mayor

What3words was first created in the U.K. in 2013 and is credited to saving the lives of outdoor enthusiasts around the world. (Contributed)
‘This is a life saving tool’: App helps paramedics find capsized canoeists near Revelstoke

What3words pinpoints the person’s phone location to a three-meter range

Most Read