For more than six years, the BC Government has been feeding LNG whoppers to BC citizens. None were bigger than this one by a pal of Christy Clark:
Reality is that LNG plants will only be constructed in BC if the province provides unprecedented subsidies and tax relief.
Inducements include natural gas that is essentially free of royalties and other levies, electricity at a fraction of the cost BC Hydro incurs for new power and, after passage of Bill 10, tax credits that will eliminate provincial income tax that might otherwise be paid by LNG operators.
We’ve already experienced the near elimination of natural gas royalties in BC. See the preceding IN-SIGHTS article for detail.
Additionally, the industry no longer pays material amounts to the province for natural gas and petroleum rights. These were once substantial.
The final two months of the 2019 fiscal year ended March 31 brought in ZERO dollars from rights offerings. The last nine months brought in the least amount of any nine months in the preceding 25 years.
An energy policy fellow at the C.D. Howe Institute wrote that an expanded LNG industry in BC is good news for gas producers facing low prices. Meaning, higher prices.
Oh, joy. We’ll pay rising carbon taxes to heat our homes with AND we’ll pay higher prices for the fuel.
But, the costs we incur to promote LNG are not only financial.
LNG Canada near Kitimat plans to export 14 million tonnes per annum. The facility would produce about one-quarter of the GHG emissions target for the entire province in 2030.
What does British Columbia get in return? The government’s answer is jobs, jobs, jobs. Perhaps they expect increased fossil fuel production will create additional employment to fight wildfires and restore property after extreme weather events.
More likely, the promise of employment in the LNG industry has been calculated in the same way Trudeau Liberals’ computed jobs affected if criminal prosecution of SNC-Lavalin is not halted.
The Horgan Government assures 10,000 construction jobs and up to 950 permanent jobs in the processing terminal.
Yet, the larger LNG plant on Australia’s Barrow Island promised 6,000 construction jobs and 350 permanent staff positions. They also pledged to capture carbon released in LNG production and even got millions from government for the effort. However, more than two years on, the storage still hasn’t started.
Technical problems, of course. They meant well.
Emissions From Fracking 5 Times Higher Than Reported, Clean Technica, February, 2018:
Natural gas is not a “bridge fuel to the future.” It is a death sentence for humanity. Think that is too strong? Think again. A new study by the Environmental Defense Fund finds that methane escaping from fracking operations in Pennsylvania “causes the same near term climate pollution as 11 coal fired power plants” and is “five times higher than what oil and gas companies report” to the state. A previous assessment by EDF last November found methane emissions escaping from oil and gas wells in New Mexico are “equivalent to the climate impact of approximately 12 coal fired power plants.”