Close X
Thursday, October 31, 2024
ADVT 
National

Blockbuster US $70-Billion Shell-BG Deal Could Weigh On B.C. LNG Plan

Darpan News Desk The Canadian Press, 08 Apr, 2015 01:53 PM
    CALGARY — Royal Dutch Shell's US$70-billion deal to buy Britain's BG Group could mean fewer contenders in British Columbia's LNG race.
     
    Both Shell and BG have a big global presence when it comes to liquefied natural gas  — natural gas that is chilled into a liquid state so that it can be transported overseas on tankers.
     
    "Shell and BG will now be presumably looking to consolidate different assets, including potentially assets in the LNG space," said Alan Ross, a lawyer with Borden Ladner Gervais in Calgary who has worked on behalf of LNG clients.
     
    That includes projects each company has been working on in British Columbia.
     
    Shell leads a consortium of companies planning the LNG Canada project in Kitimat, which could cost up to US$40 billion. BG has its own project near Prince Rupert in the hopper, but last fall decided to pause work on it due to market uncertainty.
     
     
    There are 19 projects proposed for the West Coast, but none of their backers have made a firm decision to proceed. The outlook for B.C.'s nascent LNG industry has been clouded by low commodity prices and competition from projects elsewhere in the world that are further along.
     
    "It's unlikely in my view that most of the LNG projects that are currently proposed will get built," said Ross.
     
    "There's an awful lot of proposed LNG projects and simply not enough need for all of them."
     
    A report by Moody's Investors Service earlier this week painted a gloomy picture of the global LNG industry's prospects.
     
    It predicted the "vast majority" of projects planned in the United States and Canada are likely to be cancelled as the price advantage of LNG is "wiped out," although plants under construction are likely to still go ahead.

    MORE National ARTICLES

    B.C. Construction Unions Vote To Extend Contract As Workers Await Site C Jobs

    B.C. Construction Unions Vote To Extend Contract As Workers Await Site C Jobs
    VANCOUVER — Unionized construction workers in British Columbia have voted to approve a contract extension to their collective agreement.

    B.C. Construction Unions Vote To Extend Contract As Workers Await Site C Jobs

    Desjardins Insurance Mobile App For Drivers Raises Privacy Concerns

    Desjardins Insurance Mobile App For Drivers Raises Privacy Concerns
    TORONTO — A Canadian insurance company has developed a mobile app that purports to evaluate a user's driving behaviour and offer discounts on their premiums if their skills are up to snuff.

    Desjardins Insurance Mobile App For Drivers Raises Privacy Concerns

    Mike Duffy Trial Told About Factors Governing Senate Residence

    Mike Duffy Trial Told About Factors Governing Senate Residence
    OTTAWA — Determining a senator's place of residence can be complicated, the former law clerk of the Senate told the Mike Duffy trial on Wednesday.

    Mike Duffy Trial Told About Factors Governing Senate Residence

    Animal Rights Group Files 'False' Claims Complaint Against Maple Lodge Farms

    Animal Rights Group Files 'False' Claims Complaint Against Maple Lodge Farms
    TORONTO — An animal rights group has filed a complaint against one of Canada's largest chicken producers, alleging the company makes  "numerous false and misleading  claims."

    Animal Rights Group Files 'False' Claims Complaint Against Maple Lodge Farms

    Joe Oliver Says Conservatives Will Keep Promise To Introduce Balanced Budget Law

    Joe Oliver Says Conservatives Will Keep Promise To Introduce Balanced Budget Law
    TORONTO — Finance Minister Joe Oliver says the Conservative government will introduce balanced budget legislation.

    Joe Oliver Says Conservatives Will Keep Promise To Introduce Balanced Budget Law

    Longtime archbishop of Montreal, Cardinal Jean-Claude Turcotte, dead at 78

    MONTREAL — Cardinal Jean-Claude Turcotte, who oversaw the funerals of NHL great Maurice (Rocket) Richard and former prime minister Pierre Elliott Trudeau during his 22 years as archbishop of Montreal, died early Wednesday after a lengthy illness. He was 78.

    Longtime archbishop of Montreal, Cardinal Jean-Claude Turcotte, dead at 78