We will have to see if there are any major announcements this week.

The big International LNG Conference is being held in Vancouver. This include the senior management from the major projects, and around 200 local BC companies trying to get in on the action.

http://engage.gov.bc.ca/lnginbc/lng-conference/

A bit of an announcement:

Proponent awards LNG plant-design contract on eve of B.C. industry conference

Decision to build facility ‘still some time away,’ CEO says

Vancouver Sun, May 20, 2014

If the 3-4 BC LNG plants that are expected to, go ahead, it will create a lot of engineering jobs for many years...

Engineering contract work begins June 1, 2014 - link to industry source: http://www.lngindustry.com/news/liqu...x#.U3zARl4V9ZU

Hmmm....

Petronas CEO warns BC against 'unrealistic expectations' on LNG

BIV May 21, 2014

haha BC plans to be a major LNG exporting nation! We should be r our own nation :D

China isn't the only planned destination for BC LNG. Regardless their domestic demand for gas is set to increase significantly over the next 20 years anyway!

WesPac Midstream files bid to export B.C. LNG

VANCOUVER — The Globe and Mail - Monday, Jun. 23 2014

and yet another LNG plant proposal.. the largest one yet , to be built on Vancouver Island.

Aboriginal group on Vancouver Island signs deal for LNG project

Link to article - http://www.theglobeandmail.com/repor...ticle19507257/

Apache Corp., under investor pressure, exiting Kitimat LNG project

Vancouver Sun, July 31, 2014

http://www.vancouversun.com/business...#ixzz394jLJptx

Hmm, looks like the Asians are also squeezing the Americans out of Canada's LNG.

Hmm?
http://www.streetinsider.com/entities/JANA+Partners+LLC

LNG like the oil sands is a patient capital business.

Or do you mean if a project doesn't have integrated customers in the ownership structure they seem to be fading away?

That one. Seems like these LNG facilities and purchase of gas reserves form parts of a national energy strategy/policy hedge. Canada is seen as about as safe and stable a region as can be in this world. Why deal with public US firms like Chevron or Apache? May help spread risk, but they will have no interest in your national energy policy. I feel the BC natives would though, so partnerships with BC native bands make sense to me, give them a vested interest and help secure access lands and keep the peace ;)

Take Pacific Northwest LNG - attempting to finance $15 billion, the largest debt-financing deal in Canadian history. Petronas has Sinopec, Japex, Indian Oil Corporation and Petroleum Brunei as investors with long-term sales agreements. This one will be built if they can agree on a tax/royalty scheme. It is a poker game with the government right now, who is bluffing and who has the best hand??

Petronas could always source its gas from Alberta, and file for all its needed approvals in front of the National Energy Board if BC can't agree on tax terms. I am sure the government of BC knows this and will eventually fold on most additional LNG taxes, in exchange for a reasonable accounting of transfer pricing for income tax and royalty purposes.

http://www.lngglobal.com/latest/u-s-...e-nations.html

BC missed the window on LNG. Australia is already exporting and has many more projects in various stages of development.

Chevron and Apache are far more known entities than First Nations bands. Next to no resource development will occur until the land claims stalemate resolves itself.

Also, doesn't BC's carbon tax make LNG unattractive? Liquefying natural gas consumes ~20% of the energy in the gas, which is far worse than oil sands production.

Could and likely will. I think the deal with BC is close.

I think the BC carbon tax is good and creates an incentive to be more efficient and cut carbon emissions. Currently it sits at $30/t of emissions, which I have read will result in a carbon tax bill of ~$200 million per year for a typical two-train LNG terminal using natural gas-fired compression. It will be less if they are more efficient (or use Hydro).

The carbon tax collected of course results in a corresponding income/corporate tax cut (the BC carbon tax is revenue neutral and cannot be used to fund government programs).

As far as ERoEI for LNG vs Oil Sands - I doubt the oil sands are any better, they certainly consume massive amounts of natural gas (1.4 to 1.6 bcf/day by 2015 and rising), require a large amount of heavy mining and processing equipment and use lots of water. I think in the end, after being mined, extracted and refined to a usable fuel, oil sands are around 3:1 (energy returned on energy invested) on average for all production. No?

eroei is interesting, but in isolation I don't think provides useful data. It doesn't really tell you anything as an environmental measure or economic measure. Otherwise environmentalists would be pushing for coal use to fuel electric cars!

That is assuming the companies will pay BC tax. If they are HQ'd in Alberta then presumably there would be no BC tax to pay and thus no corresponding adjustment. The carbon tax would be a direct cost on the project.

Interesting that Albertans are starting to post quite a bit in this thread now. I wonder why now.

Speaking personally it is because some of these projects appear to actually be moving ahead. For me there wasn't much point in posting on speculation or what if's.

Accountants might tell you something different. Canada Revenue agency would have a bulletin on how to account for compliance costs like carbon taxes, fees, or cap and trade.

I believe the tax goes to the jurisdiction the profit is earned in, but that can be impacted with franchise fees and transfer pricing. BC LNG corp could be paying a lot to head office corp in another province or country as management fees, financing, etc.

Transfer pricing is what matters most for the tax take on LNG in Canada. How do you count profit if someone owns the gas through the entire process within Canada? Royalties and taxes based on well head prices or on LNG minus processing and transport prices?

I would most certainly assume that the carbon tax operates like the sales tax and not the income tax. It is most certainly based on the location of emission, not where the mind and management is located. Phew! Those four tax courses were fun.