So the BC government won't be expecting head offices in Vancouver?

Expecting, wanting, and being able to require is very different. Even favourable tax treatment is unenforceable, you don't need much to domicile a subsidiary company. Even in 2011, when BC accounted for 75% of Progress's production the head office was in Calgary. Look at this job listing: http://www.progressenergy.com/career...s/tax-manager/ the person responsible for planning PST and Carbon Tax planning will be in Calgary.

The cluster is just too big of a gravity well. There really isn't much advantage to the province except in a few office jobs and property tax to having the headquarters.

You are not entirely correct.

As previously mentioned - Yes, on the gas extraction/production/pipeline side the companies are already Alberta/Calgary - with most operations in the Fort St. John region - as it has been all along. But on the LNG side (new industry), the operations and administration jobs will be mostly BC/Vancouver.

Look at this job listing for a Senior Financial Analyst for Pacific Northwest LNG to be based in their Vancouver office ;)

http://pacificnorthwestlng.com/wp-co...st-Posting.pdf

Here is a BG group (UK based & partner with Spectra in another large LNG project) info sheet on their Canadian operations and contact info for their Vancouver office:

http://www.bg-group.com/229/where-we...nada/contacts/

Here is Spectra Energy (Houston based partner of BG Group for this project - http://www.spectraenergy.com/Operati...tation-System/), listing both a Vancouver and Calgary as regional offices for operations:

http://www.spectraenergy.com/Contact...ional-Offices/

Of course Chevron already has a large presence in Vancouver.

I don't think there will be a heavy corporate energy presence in Vancouver in the range of thousands and thousands like Calgary, as the subsidiaries do not require a large administrative office staff - about 130-150 as mentioned in the backgrounder for PNW. But I do understand that the CEO of Progress is relocating to Vancouver from Calgary to take over the reins at Pacific Northwest while still maintaining his role at Progress. I can see Petronas wanting to relocate their subsidiary Progress to Vancouver form Calgary eventually if the LNG plant is built, and there already is a large mining cluster there with all the geologists etc.

And yes, as you mentioned, the Lions share of gas extraction, pipeline construction/operation, LNG production & corporate activity will be in BC, so the taxes and royalties will be collected here regardless of where the HQ is, even if its mostly Texas and Asia in reality. Petronas executives from the head office are making regular trips to Vancouver and dealing directly with the BC government and regulatory agencies.

In any case, if the LNG plants are built - there will a definite impact on Vancouver on the corporate side (well over 1000 head office jobs plus spinoffs in legal and engineering, from very little LNG activity now). And Alberta will also get a boost on the gas extraction/exploration/pipeline side as it does not make sense to move (even part, other than Progress) of that cluster to Vancouver from Calgary. This could be good timing for Alberta too, with the looming slowdown in the oilsands (foreign money is drying up) and if these LNG plants get built here I'm sure we will need a few thousand workers from Alberta.

^ That 200 employees includes the Calgary office and Fort St. John. Is there a different backgrounder you are talking about than the link?

Nope. Pacific Northwest LNG does not currently have an office, nor any jobs offered in Calgary or Fort St. John - their affiliate Progress Energy does though on the gas extraction and supply side for the LNG plant - which is a separate operation. The transmission pipeline (for PNW) is to be built and operated by Transcanada, so there will be more Alberta (and BC - as TC recently expanded its Vancouver office) jobs there - again a separate operation.

Here is the link to the backgrounder. States that 130 'careers' will be offered at PNW LNGs Vancouver office, plus 330 jobs at its Prince Rupert plant/office once in production. Should the investment decision to go go forward be approved by head office in KL. Of course there will be many spin off support jobs around both locations too.

http://pacificnorthwestlng.com/wp-co...der_V.19.0.pdf

Ohhh, more signs of LNG progress! And boost for BC Hydro. This is for the (significant) ancillary power supply, not for gas compression.

BC Hydro and LNG Canada sign power deal

Nov 4 - Canadian Press - Victoria, BC
http://globalnews.ca/news/1653111/bc...gn-power-deal/



LNG Canada link for info on their partners/project and economic opportunities - http://lngcanada.ca/contact/

LNG Canada - started environmental assessment today.

Shell says LNG project in B.C. to cost up to $40-billion when complete

Financial Post - November 7, 2014

http://business.financialpost.com/20..._lsa=20d8-fa7b

Interesting tidbit from Vaughn Palmer's column from a few days ago regarding Royal Dutch Shell's recent global investor update conference call:

Still suspect that their FID will be sometime in 2016 though.

Yeah, many executives seem positive...but 'a bird in hand is worth two in the bush' :) Fingers crossed that a few get built and the fracking isn't as bad as some say... already increased drilling activity in the NE I understand - so another good sign.

It isn't ;)

There are issues with it for sure, but mostly not the hysterical nonsense seen in the media. And many of the criticisms levelled at it are in fact criticisms of the entire extraction process, not the actual fracking.

It's a hell of a lot cleaner than mining, at least.

Yeah, most of the issues in Pennsylvania were about water disposal, of which there were basically no rules due to super odd rules brought in under the republican troika in the mid 2000s. Companies were dropping off produced water full of radioactive and heavy metals at standard municipal water treatment plants that had no capacity to deal with them. In Canada, it is pretty normal to use a disposal well to get rid of particularly nasty waste from the process.

In places that aren't choke full of wells from earlier generations of gas and oil production fracking should be a bit safer. You don't have to worry about any migration except through your casing.

Still recall that Petronas was negative in terms of the BC LNG tax leading up to same. Now, it has been reported that they are satisfied with same. So be it.

Also note that Petronas, for whatever reason, still wants to go ahead with its FID next month in December. Was apprehensive of same due to the CEAA environmental certification, which may extend until next May. However, appears Petronas will receive its BC enviro certificate shortly.

And BC LNG minister Coleman met with Petronas in Kuala Lampur this past Tuesday on November 11. No word what transpired there.

Yet 3 days later, Japex, a 10% interest holder in Petronas proposed LNG facility and upstream NG assets, announced construction of its Japan Soma LNG import terminal.

Where will the LNG imports for same come from? Petronas BC LNG facility.

http://www.argusmedia.com/News/Article?id=948160

Japex would not commence construction without knowledge and confidence that FID will be issued by Petronas over here. My gut tells me that, in fact, Petronas will announce their FID next month. Stay tuned.

Thanks! Promising info. Import terminal to be located in Fukushima beside future 1200 MW gas generating facility.:tup:

^ There is enough LNG on the spot market right now that it shouldn't be a problem, but long term you would want to lock in.

Exxon becomes seventh member of B.C. LNG Alliance

VANCOUVER — The Globe and Mail - Nov 19, 2014
http://www.theglobeandmail.com/repor...ticle21656784/

Well, Petronas received their BC Environmental Assessment Certificate last week for its proposed LNG facility. Concurrently, Trans Canada Pipeline received its BCEAC last week as well for its connecting NG pipeline from NE BC to the west coast.

In any event some further news today from Petronas:

http://www.businessweek.com/news/201...e-lng-decision

Some questions for those in the know:

1. Do you think BC will set up a Norway-style sovereign wealth fund, or will it give away all the money to corporations like Alberta did? The PC's have eaten through the Alberta Heritage Fund and have gone into the red six years running, while schools and hospitals are crumbling. And if you criticize this, Albertans will cry "Unconstitutional! Hands off mah oil! NEP, NEP!"

2. If the loonie and oil prices continue to fall, will this be favourable or unfavourable for LNG exploration in BC?

3. Even with the office construction boom in downtown, does Vancouver risk running out of land to house these companies? Most of the downtown peninsula is condos, and I can't see land reclamation gaining widespread support.

4. Do you think a Horgan NDP government, or a Trudeau Liberal government, would be LNG-friendly?

Would say rather than giving all the money to corporations, the PCs have instead spent the money on the public, who want high services combined with low taxes = nothing put into the bank for the future.

I have been following the LNG developments fairly closely for a while now, but I am not employed by the energy industry. So my thoughts are:

1. BC should concentrate on paying off debt. The Libs have said that they intend to start a savings fund - and this is good and a small one should be started (annual deposits) subject to prevailing rates of return, but I hope reducing the debt and funding education/health is #1 priority.

2. The companies say that the plants are financially viable even if there is a further drop in oil prices (dragging down energy prices overall in Asia). As long as the NG gas is cheaper here than there. The LNG companies have room for the contract purchase prices in Asia to drop somewhat, but of course only they know exactly how much.

3. The LNG companies will have rather small offices in Vancouver (there is no ongoing exploration and likely little expansion) - they say 100-250 employees each. So, counting the spinoff jobs in engineering, financial and legal I guess I would hope there is enough demand for space to absorb what they are/will build DT over the next few years. That is if 3-4 plants go ahead.

4. Yes. The NDP have stated they are for an LNG industry, just so long as the natives and the communities affected (and all BC residents for that matter) benefit and not just the foreign companies. However, if a few plants go ahead the NDP don't have much hope of winning the next election... unless some kind of 'event' happens to disgrace the BC Libs. Plus, the agreements with producers would already be in place.

I think all Trudeau was concerned about was getting 'more' scientific evidence on fracking and its safety.. while that scares the energy crowd I think there is decent science behind it. We need energy.. and every source will have it negatives...the sources with lesser impact to the overall environment will be hard to pass up.