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-   -   Proposed West Coast BC LNG Terminals (https://skyscraperpage.com/forum//showthread.php?t=201424)

craneSpotter Nov 10, 2013 3:44 PM

Quote:

Originally Posted by Stingray2004 (Post 6292791)
Ergo, a Final Investment Decision (FID) was expected in September, 2014 but after today's announcement that seems to be just a future formality. Today, Petronas announced that it will definitely be proceeding with the LNG facility (plus pipeline and upstream natural gas development) with a gargantuan capital cost of $36 billion!

To further support that - Petronas just bought MORE Montney assets from Talisman for 1.4 Billion to help secure a long term supply of gas.

Talisman Sells Montney Assets to Petronas for $1.4 Billion (4)

BloombergBusinessweek - Nov 8, 2013

Quote:

Talisman Energy Inc. (TLM), the Canadian oil and natural gas producer being targeted by investor Carl Icahn, agreed to sell part of its Montney acreage to Malaysia’s Petroliam Nasional Bhd for C$1.5 billion ($1.4 billion).

The transaction involves about 127,000 net acres, representing 75 percent of Talisman’s Montney shale holdings in the Farrell Creek and Cypress areas of British Columbia, the Calgary-based company said today in a statement. It includes C$800 million in drilling costs. Talisman rose 1.6 percent to C$12.42 at the close in Toronto.

craneSpotter Nov 13, 2013 5:03 PM

China’s CNOOC gets exclusive rights to LNG lands in B.C.

Financial Post - Nov 12, 2013

Quote:

China’s CNOOC Ltd. has plunked down $12-million with the British Columbia government to secure lands for a potential liquefied natural gas plant on Canada’s West Coast, in the latest move by a state-owned energy company doubling down on the province’s gas resources.

CNOOC, which last year bought Calgary-based Nexen Inc. in China’s largest-ever overseas acquisition, has teamed up with Japan’s Inpex Corp. and JGC Corp. to build an export terminal at Grassy Point, a narrow peninsula about 30 kilometres north of Prince Rupert, B.C., the province said Tuesday.

CNOOC would own 60% of Aurora LNG, with Inpex and JGC owning a combined 40%, Nexen CEO Kevin Reinhart said at a press conference in Vancouver announcing the deal. The arrangement gives Nexen exclusive rights to pursue long-term access to the Crown land, the company said in statement.

craneSpotter Nov 27, 2013 2:21 PM

China's Sinopec in talks to invest in Kitimat LNG project in B.C.: source

Globe and Mail, Nov 27, 2013

Quote:

Sinopec, China’s biggest oil refiner, is in talks with Apache Corp to buy a stake in the Kitimat LNG export project on Canada’s Pacific coast, according to an industry executive with direct knowledge of the matter...

...The $15-billion project, located in northern British Columbia, is expected to begin shipping gas to Asia by 2017.

craneSpotter Dec 3, 2013 6:51 PM

More activity in the burgeoning west coast LNG industry:

Horn River, Cordova, Liard basins to supply Aurora LNG plant: NEB export filing

BIV December 2, 2013

Quote:

Natural gas resources in the Horn River and Cordova Embayment of northeast British Columbia are expected to feed the planned Aurora LNG facility, a National Energy Board filing noted.

On Friday, Nexen Energy ULC on behalf of Aurora Liquefied Natural Gas Ltd., jointly owned by CNOOC Ltd.-held Nexen, INPEX Corporation and JGC Exploration Ltd., applied to the NEB seeking an export licence for a term of 25 years to send out LNG.

The B.C. government recently announced a land deal with Nexen for the Aurora LNG plant to be located at Grassy Point in the Prince Rupert area.

Stingray2004 Jan 14, 2014 5:49 AM

Chevron/Apache today awarded a tendered engineering, procurement and construction (EPC) contract to Fluor/JGC reportedly worth $9.4 billion US for Kitimat LNG. I still haven't determined whether that figure is for one or two liquefaction trains. The FEED contract was previously awarded in 2011.

FID was always expected within 12 - 18 months from now, but with the awarding of the EPC contract today, may be even sooner.

Quote:

Hong Kong Standard
January 14, 2014

Japan-US Venture To Build Canadian Gas Plant

Japanese engineering giant JGC Corp. said Tuesday it has won a contract to help build a Canadian liquefied natural gas plant in a deal reportedly worth US$9.4 billion.

JGC said its joint venture with US-based Fluor Corp. was awarded the tender by Chevron Canada to design and build the Kitimat LNG plant in the western province of British Columbia.

Chevron and Apache Canada each hold a 50 percent interest in the proposed plant, which will have an annual capacity of 11 million tonnes of LNG, according to a JGC statement.

Neither JGC nor Fluor announced financial details of the contract or when construction would begin.

Japan's leading Nikkei business daily reported that the site would process natural gas into its liquefied form before being shipped to Japan and other markets. It added that the one trillion yen ($9.43 billion) plant would be Canada's first major LNG production facility.
http://www.thestandard.com.hk/breaki...&icid=1&d_str=

craneSpotter Feb 13, 2014 12:02 AM

Some more activity:

Rio Tinto to sell or lease Kitimat port to LNG Canada

CBC News Feb 12, 2014

Quote:

More pieces are falling into place for the LNG Canada natural gas liquefaction plant and export terminal in Kitimat, B.C.

On Wednesday, Rio Tinto PLC said it had reached an option agreement to sell or lease its wharf and associated land to LNG Canada.

Rio Tinto said the terms of the deal were confidential.

The agreement gives LNG Canada, a joint venture of Shell Canada Energy, China's Phoenix Energy Holdings Ltd., Korea's Kogas Canada LNG Ltd. and Diamond LNG Canada Ltd., an affiliate of Mitsubishi Corp., access to the deep water port in Kitimat...

...Rio Tinto has been selling assets to reduce its debt since acquiring Canada's Alcan aluminum assets in 2007 for US$38.1 billion. It is modernizing the aluminum plant in Kitimat and plans to share use of the deep water port with LNG Canada.
http://www.vancouversun.com/business...?size=620x400s

craneSpotter Feb 13, 2014 12:07 AM

More:

Petronas courts Indian Oil for B.C. LNG investment

Globe and Mail, February 11, 2014

Quote:

Malaysia’s Petronas is narrowing its search for new partners to help construct a multibillion-dollar liquefied natural gas operation in British Columbia, with India topping the shortlist.

State-owned Petronas, which leads the Pacific NorthWest LNG Ltd. project to build an export terminal at Prince Rupert in northwestern British Columbia, signed up Japan Petroleum Exploration and Petroleum Brunei as B.C. LNG partners last year....

...Pacific NorthWest estimates that almost $36-billion will need to be spent in order to make its export plan a reality in early 2019. The massive budget includes $6.7-billion in pipeline projects, nearly $11-billion for an export plant at Lelu Island near Prince Rupert, Petronas’s $5.2-billion acquisition of Progress and more than $2-billion annually from 2013 through 2018 on northeast B.C. natural gas development projects.

Pacific NorthWest is aiming to make its final investment decision by the end of 2014.
Also something to consider about these LNG projects - Canada is considered a safe and stable long-term bet ;)
Quote:

TD Securities Inc. analyst Menno Hulshof said in a recent research note that state-owned energy firms may have different goals in their decision-making process on B.C. LNG projects than the private sector. “Decisions made by the national oil companies could in part be driven by ‘security of supply’ considerations,” he said.

craneSpotter Feb 25, 2014 8:37 PM

More action on the BC LNG front, with new Indian/Asian partners for Petronas.

Petronas to sell 25% stake in its Canadian gas assets

SINGAPORE — Reuters - Feb. 25 2014


Quote:

Malaysia’s Petronas has agreed to sell a 25 per cent stake in its Canadian shale gas assets to an Indian company and an Asian gas buyer, the state firm’s president and chief executive, Shamsul Azhar Abbas, said on Tuesday.

Petronas is looking to share some of the costs of bringing liquefied natural gas (LNG) from North America to energy-hungry Asia. Indian state oil and gas companies want to expand their portfolios of exploration and producing assets.

craneSpotter Feb 27, 2014 7:19 PM

Well, it sounds like billions are starting to flow into LNG (land development, front-end engineering & design) this year?

As Apache seeks partners for Kitimat LNG project, B.C. minister pegs threshold at $1-billion

VICTORIA and VANCOUVER — The Globe and Mail - Feb. 26 2014

Quote:

Faced with the prospects of high front-end costs – $1-billion this year alone – Apache’s CEO said Wednesday the company needs to “right-size” and reduce its stake in Kitimat LNG by hunting for new partners.

Rich Coleman, Natural Gas Development minister, said in an interview Wednesday he’s not concerned that the high cost of exploring LNG in B.C. will scare off investors.

“Each one of these [proponents] expects to spend over $1-billion to get to final investment decision. That’s amazing.”....

...Mr. Coleman added that the preparation for the Kitimat LNG project has been particularly intensive. “They have already in their case knocked off the top of a mountain, built an industrial road 19 kilometres into their site,” he noted. There are only a handful of engineering firms capable of delivering the planning required...

...During a webcast, Mr. Farris said Apache would need to contribute $1-billion as its share of $2-billion in estimated costs in 2014 related to front-end engineering and design for an LNG export terminal at Kitimat in northwestern British Columbia.

But he reiterated comments that he made earlier this month, saying that Apache is rebalancing its energy portfolio and it would be too costly for the company to bear the massive development bills under the current structure of only two co-owners.

“We have always said that we would like to sell an equity position,” Apache spokesman Bill Mintz said in an interview from Houston. “We will continue to maintain a material interest in the project. We desire to reduce our exposure in 2014.”


craneSpotter Feb 27, 2014 7:28 PM

Pacific Trail Pipelines Limited Partnership sign $200 million commercial agreement with 15 First Nations regarding the pipeline component of the Kitimat LNG Project


VANCOUVER, BRITISH COLUMBIA – Feb 25, 2014

Pacific Trail Pipelines Limited Partnership (“PTP LP”), the First Nations (PTP) Group Limited Partnership (“FNLP”), and the Province of British Columbia (“Province”) today announced a revised benefits agreement for the proposed 463-kilometre Pacific Trail Pipeline Project (“PTP Project”) that will ensure First Nations receive immediate and long-term benefits from the PTP Project.

Link - http://mediacenter.kitimatlngfacilit..._releases.aspx

craneSpotter Mar 3, 2014 2:40 AM

Getting closer to plant construction:

Leading LNG proponent files B.C. application for $11-billion project

By Gordon Hoekstra, Vancouver Sun March 2, 2014

Quote:

Pacific NorthWest LNG has filed its project application with British Columbian and Canadian environmental assessment agencies, a critical step in the environmental review of the $11-billion project.

Led by Malaysian state-controlled Petronas, the project is among a slate of at least 10 liquefied natural gas proposals in B.C. that have come forward in the past two years.

craneSpotter Mar 8, 2014 3:15 AM

More potential customers securing long term gas supplies:

IOC (Indian Oil Corporation) picks 10% in Canadian project from Malaysia’s Petronas


Hindu Businessline
New Delhi, March 7, 2014

Quote:

Making its foray into North America, IndianOil Corporation (IOC) has signed a deal to buy a 10 per cent stake in natural gas assets and a linked liquefied natural gas project in North East British Columbia, Canada, for about $900 million (₹5,500 crore).

The Indian refiner has signed the deal through its subsidiary IndOil Montney with Petronas Carigali Canada, part of Malaysia’s Petronas, it said on Friday.

This investment would provide IOC an opportunity to secure upstream participation in the highly prospective Montney play in Canada, along with securing long-term gas supply through the Pacific NorthWest LNG export facility for India’s growing requirements.

craneSpotter Mar 8, 2014 3:33 AM

Another application for an export plant:

Vancouver energy company applies for LNG export licence

Globe and Mail, Vancouver - March 5, 2014

Quote:

A Vancouver-based energy company has filed an application to export B.C. liquefied natural gas, joining a growing list of projects seeking to ship LNG to Asia.

Canada Stewart Energy Group Ltd. filed its 25-year LNG export licence application Wednesday to the National Energy Board.

The project, with a capacity of 30 million tonnes a year of LNG, would be located near Stewart in northwestern British Columbia.

craneSpotter Mar 14, 2014 6:18 PM

Flotel!!

This is how they propose to house some of the workers during LNG plant construction ... when/if construction starts (I think at least 3 plants will be built)... good idea, similar to how they housed some security/media during the 2010 Vancouver Olympics - although a bit more basic ;)

Floating Hotel Arrives in Kitimat to House 600 Alcan Workers

BC Business, March 10, 2014

Quote:

As northern B.C. booms with various construction projects and preparations for LNG development, towns like Kitimat face a housing crunch. One company's solution to the problem docked at Terminal B in Kitimat on Monday

A floating hotel arrived in Kitimat Monday morning to house 600 labourers working on Rio Tinto Alcan’s $3.3-billion aluminum smelter modernization project. But the entrepreneurs behind the “flotel,” as they call it, see opportunities far beyond this one-year contract with the mining giant....

...“The services on land just aren’t there. The land in the Pacific Northwest is relatively limited, and the services to support the land are relatively limited. This is an excellent solution. We arrive in Kitimat and within 24 hours, we’ll be housing people and functioning. It’s effectively a plug-and-play opportunity.”...

...“This ship is going to essentially double the convention area and the cafeteria area in Kitimat,” said Purdey, noting that the boat has nine conference rooms and can serve up to 2,000 meals a day. “The town is under a lot of pressure and this vessel will relieve a lot of that pressure.”
http://www.bcbusiness.ca/sites/defau...?itok=7F7gRFKU

craneSpotter Mar 20, 2014 4:45 PM

yet another LNG proposal, this time from Vancouver based Steelhead LNG.

Smaller firms can get piece of LNG export action: former attorney-general

Globe and Mail, Mar 20, 2014

Quote:

Small players have a chance to make inroads in the intense competition to export B.C. liquefied natural gas to Asia, despite the dominance of large energy corporations, says a former B.C. attorney-general, now a director at an upstart LNG project.

Vancouver-based Steelhead LNG Corp. emerged this week as a new LNG proponent seeking to find a niche in an increasingly crowded field, as industry analysts caution that there are huge obstacles ahead. With British Columbia trailing other jurisdictions such as Australia in getting into the game, there might be three or four B.C. LNG projects at most that will be viable.
This seems to be the consensus now, three to four plants being built. But even three large plants would have a large impact on the economy. The drilling activity alone in the NE would be crazy... plus the pipeline construction etc.

We shall see.

casper Mar 22, 2014 7:41 PM

Quote:

Originally Posted by craneSpotter (Post 6494591)
Flotel!!

This is how they propose to house some of the workers during LNG plant construction ... when/if construction starts (I think at least 3 plants will be built)... good idea, similar to how they housed some security/media during the 2010 Vancouver Olympics - although a bit more basic ;)

Floating Hotel Arrives in Kitimat to House 600 Alcan Workers

BC Business, March 10, 2014



http://www.bcbusiness.ca/sites/defau...?itok=7F7gRFKU

There is no shortage of old cruise ships that are designed for 1,000 passengers that are sitting idle. All the cruise ship lines are moving to mega ships.

Would make for a pretty nice place to work if they keep the pool and other R&R facilities open.

craneSpotter Mar 31, 2014 10:11 PM

Quote:

Originally Posted by casper (Post 6507129)
There is no shortage of old cruise ships that are designed for 1,000 passengers that are sitting idle. All the cruise ship lines are moving to mega ships.

Would make for a pretty nice place to work if they keep the pool and other R&R facilities open.

Yes, I understand some LNG companies are in the process of sourcing them to house thousands of potential workers. Great option when working in a marine environment - as is being able to ship (literally ha!) equipment and plant modules via the ocean on huge ships and/or barges form the point of fabrication & assembly ;)

craneSpotter Mar 31, 2014 10:13 PM

Ottawa approves long-term export licences for B.C. LNG sites

BIV, March 28, 2014

Quote:

"The approval of these licences is a major step forward in opening the door for Canada's natural gas industry to access world markets. Opening new markets for our energy products supports our government's top priority: creating jobs, growth and long-term prosperity for Canadians."

Licences were approved for Pacific NorthWest LNG and Prince Rupert LNG, both of which have proposed sites near Prince Rupert.

Two more licences were also handed out to Woodfibre LNG for a facility in Squamish, and WCC LNG, which is considering sites in either Prince Rupert or Kitimat.

Asia is one of B.C.'s main targets for LNG exports. Tankers leaving the province's coast can arrive in Asia in 11 days, which is about a month faster than those leaving from the Gulf of Mexico.

craneSpotter Apr 4, 2014 6:21 PM

Christy Clark vows to fast-track education changes to ensure LNG jobs go to British Columbians

Vancouver Sun, April 3, 2014

Quote:

VICTORIA — Premier Christy Clark, organized labour and First Nations leaders said Wednesday they will work together to train enough workers to build and operate proposed liquefied natural gas plants in B.C.

A committee, struck up by Clark and labour leaders in September, produced 15 recommendations to tackle apprenticeship, training and other challenges in B.C. nascent LNG sector, said Clark.

Among the highlights is a call to make sure that in LNG trades jobs, a quarter of the jobs are filled by apprentices. It is the first such time a quota has been proposed by the B.C. government.

....“If we don’t get this started now, we will not have the labour available, British Columbians won’t have the skills they need to fill these jobs when they start to become open in huge numbers in one, two, three or four years,” Clark said.

“It has to start now. You can’t start training people in the year those jobs become available. It’s too late.”

The premier has said she needs to plot a course to fill as many as 100,000 jobs building and operating LNG plants.
Of course a special agreement with regard to temporary foreign workers with the feds was also made... BC saw 50,000 temporary foreign workers enter the province in 2012, the last year of available records ... by comparison Saskatchewan saw 5,000...

craneSpotter Apr 8, 2014 5:49 AM

British Columbia rushes to approve LNG regime as global competition heats up

Financial Post, Apr 7, 2014

Quote:

British Columbia’s final decision on its liquefied natural gas fiscal regime could come before the summer and not fall as originally thought, as the provincial government moves quickly to engage companies that are poised to build billions of dollars worth of export projects on the West Coast....

...Mr. Carr says labour is the “number one issue in terms of costs” facing the industry. On Thursday the government released an LNG skills strategy as it seeks to create labour skills needed to meet expected demand.

The province may need as many as 670,000 new workers by 2020, and B.C. is looking to recruit around 75,000 from within Canada and another 265,000 internationally during the period.
Big expectations.

DizzyEdge Apr 8, 2014 5:56 AM

Wow, expecting to need a 15% increase in BC's population in the next 6 years just to fill jobs... maybe 20%+ if you include dependents. Insane.

GlassCity Apr 8, 2014 7:39 AM

Surely we could find some of those 265,000 workers from within Canada...

Metro-One Apr 8, 2014 7:49 AM

Until I start seeing some construction photos of these facilities it is still all fantasy to me. I really do hope this predicted boom occurs, BC needs it, good thing the Liberals are in power currently.

GlassCity Apr 8, 2014 7:50 AM

Quote:

Originally Posted by Metro-One (Post 6530122)
Until I start seeing some construction photos of these facilities it is still all fantasy to me. I really do hope this predicted boom occurs, BC needs it, good thing the Liberals are in power currently.

Yeah, that's how I feel. Too much talk and not enough action going on. I'm anxious for this to actually take place.

craneSpotter Apr 12, 2014 3:47 PM

Quote:

Originally Posted by GlassCity (Post 6530124)
Yeah, that's how I feel. Too much talk and not enough action going on. I'm anxious for this to actually take place.

Yeah, lots of talking. Some land purchasing and rough site prep - but no real action on the ground as of yet. I look forward to the first actual decision to finance the construction of the first plant - almost sure to be Petronas.

craneSpotter Apr 12, 2014 3:50 PM

The LNG race: The lessons Canada can learn from Australia

GLADSTONE, AUSTRALIA and VANCOUVER — The Globe and Mail - Apr 12, 2014

Quote:

...The workers toil away late at night to avoid the searing heat of Australia’s late summer sun. They had recently built the roof for an identical adjacent container, both part of the $24.7-billion Australian ($25.5-billion Canadian) joint venture Australia Pacific LNG, owned by American oil and gas firm ConocoPhillips Co., Australian energy giant Origin and China’s state-owned Sinopec....

...The world is undergoing an LNG boom, and Australia is at the epicentre. Right next door to Australia Pacific LNG’s 3,600 workers on Curtis Island is a similar-sized, $20.4-billion (U.S.) LNG export terminal under construction for a project led by British-based BG Group. And next door to that is yet another project run by Australian energy firm Santos, worth about $18.5-billion. Remarkably, construction might begin on a fourth LNG project next to that one if Royal Dutch Shell PLC decides – amid global restructuring and approvals – to push ahead with it.

All of these huge Australian projects have long-term sales contracts with massive Asian firms such as Korea Gas Corp., Malaysia’s Petronas, Japan’s Kansai Electric and China National Offshore Oil Corp. (CNOOC).

Half a world away, meanwhile, there are bold plans to make Canada an LNG powerhouse, targeting many of the same Asian firms as customers. But Australia’s huge head start, the massive scope of its LNG projects, and major cost overruns encountered along the way threaten Canada’s success as it jumps into a global industry that promises to be intensely competitive.

Canada, or more specifically British Columbia, will be lucky to have three LNG export terminals by the end of the decade. Australia, on the other hand, has three LNG export terminals nearing completion in the small port city of Gladstone alone – and this is just one small corner of a surging Australian gas export sector that will likely help the country overtake Qatar as the world’s leading LNG exporter.

craneSpotter May 12, 2014 7:16 PM

Apache cuts budget for Kitimat LNG project in 2014

BIV May 9, 2014

Quote:

Apache Corporation (NYSE:APA) is reducing its net spending in the Kitimat LNG project for 2014, and is continuing discussions with several parties to “right size” its stake in the proposed project.

Steven Farris, Apache’s chairman, chief executive officer and president, had said earlier in the year that if operator Chevron Corporation (NYSE:CVX) goes ahead with its planned Kitimat capital program in 2014, Apache would be on the hook for about US$1 billion, a figure the company wanted to get out from under.

“At Kitimat, we’ve been working with our partner to reduce our 2014 capital spend, given where we are in the project’s lifecycle,” he told the company’s first quarter conference call on Thursday. “Currently, we anticipate reducing the budget by approximately 40% to around $600 million, net. If you recall, that’s down from an initial budget net to us of $1 billion.”

craneSpotter May 12, 2014 7:38 PM

Some site preparation construction photos's from Apache's Bish Cove/Kitimat LNG project site. Early Works Construction – started February 2011 – present. Works include falling, pad building, clearing/ grubbing, burning, drilling/ blasting, crushing, road building, storm water management, hydro seeding and overall site services:

aerial view (undated)
http://upstreamonline.com.cdn.bitbit...in/Kitimat.jpg

http://bearcreekcontracting.ca/wp-co...he-bish-14.jpg

http://bearcreekcontracting.ca/wp-co...he-bish-12.jpg

http://bearcreekcontracting.ca/wp-co...he-bish-41.jpg

http://bearcreekcontracting.ca/wp-co...rthworks-1.jpg

http://bearcreekcontracting.ca/wp-co...he-bish-28.jpg

source: Bear Creek Contracting

Metro-One May 16, 2014 12:39 PM

Wow, thanks for posting! Will this be a processing plant or just a shipping terminal?

Also, if they are doing this should there also not be some pipeline work going on?

PS: I am so happy that this is taken place a little under the radar so the hippies don't get their hemp panties in a knot. I am 100% for the environment but we also need industry. As long as the much more potentially damaging northern gateway is being fought the LNG projects (which are hugely beneficial to BC and relatively safe for the environment) should be safe from too much miss informed backlash.

MalcolmTucker May 16, 2014 6:04 PM

It will be interesting to see the legalities of the LNG tax when it is finalized. I bet it changes the profile of some of the projects for sure (build a bit longer pipe, regulate under National Energy Board, and buy continental gas).

casper May 19, 2014 4:07 AM

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/

craneSpotter May 21, 2014 2:59 PM

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

Quote:

LNG Canada, the Shell-led proposal for a major liquid natural gas plant at Kitimat, has awarded a contract for the design of its $12-billion facility on the eve of the provincial government’s second annual international conference on LNG development.

While LNG Canada wouldn’t reveal the contract’s price tag, which will cover front-end design and “project execution,” the engineering bill for the similarly sized Shell Gorgon LNG project in Australia came in at $75 million when it was awarded in 2005.

The contract is with CFSW LNG Constructors, a partnership between Japanese engineering firm Chiyoda Corp., United Kingdom-based engineers Foster Wheeler AG, Australia’s Worley Parsons and Italian oil-and-gas contractor Saipem.
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

craneSpotter May 22, 2014 9:38 PM

Hmmm....

Petronas CEO warns BC against 'unrealistic expectations' on LNG

BIV May 21, 2014

Quote:

The B.C. government’s annual three-day LNG Conference opened May 21 in the shadow of an announcement that Russia had signed a $400 billion, 30-year deal to supply natural gas to China – one of B.C.’s hoped for long-term liquefied natural gas customers.

While Premier Christy Clark shrugged off the deal, saying there is plenty of opportunities to do business in China, the CEO of Petronas – now considered to be the frontrunner to build a liquefied natural gas plant in B.C. – warned against “unrealistic expectations” that could jeopardize B.C.’s plans to become a major LNG exporting nation.
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!

craneSpotter Jun 26, 2014 5:50 PM

WesPac Midstream files bid to export B.C. LNG

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

Quote:

An American energy company is backing a bid to obtain a Canadian licence to export liquefied natural gas from the Tilbury LNG plant in Delta, B.C.

WesPac Midstream LLC filed its application for a 25-year export licence to the National Energy Board, saying it wants to ship as much as 3 million tonnes a year of LNG to foreign customers in markets such as Asia, the United States, Central America and South America....

...Besides WesPac, the only other proposal in the Lower Mainland is targeted for the Squamish area. Woodfibre LNG, privately owned by Singapore-based RGE Pte. Ltd., received NEB approval in December for its 25-year licence to export 2.1 million tonnes annually of LNG from an industrial site near the community of Squamish...

...WesPac believes it will be able to find sufficient natural gas supplies in Western Canada to feed its LNG terminal. “Preliminary discussions indicate that sufficient pipeline capacity is currently available on the Spectra system from northern British Columbia to the Vancouver area,” WesPac said.


craneSpotter Jul 8, 2014 6:07 PM

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/


Quote:

VANCOUVER — The Globe and Mail - Tuesday, Jul. 08 2014

A self-governing aboriginal group on Vancouver Island has signed a deal with a fledgling liquefied natural gas company in hopes of developing a massive project to export LNG to Asia.

Members of the Huu-ay-aht First Nations say they are eager to work with project leader Steelhead LNG Corp. to build an export terminal near Bamfield on the southwest side of Vancouver Island....

...Steelhead LNG is filing its export licence application Tuesday to the National Energy Board. The Vancouver-based firm is applying to export up to 30 million tonnes of LNG annually for 25 years, making it the largest project by capacity proposed so far in British Columbia.

craneSpotter Jul 31, 2014 7:21 PM

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

Vancouver Sun, July 31, 2014

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

Quote:

Apache Corp. said in its second-quarter news release that it plans to ditch the Kitimat LNG project, which it was developing alongside Chevron Corp., as well as the Wheatstone LNG project in Australia.

The Houston-based company has been under pressure from activist hedge fund Jana Partners LLC to restructure.

"Consistent with the company's ongoing repositioning for profitable and repeatable North American onshore growth, Apache intends to completely exit the Wheatstone and Kitimat LNG projects," Apache said, adding it's also weighing its options when it comes to some of its other international operations.

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

MalcolmTucker Jul 31, 2014 7:58 PM

Quote:

Originally Posted by craneSpotter (Post 6676349)
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?
Quote:

JANA Partners LLC is a New York based hedge fund managed by Barry Rosenstein. Mr. Rosenstein founded JANA Partners in 2001.
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?

craneSpotter Jul 31, 2014 8:54 PM

Quote:

Originally Posted by MalcolmTucker (Post 6676398)
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??

MalcolmTucker Jul 31, 2014 9:04 PM

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.

MalcolmTucker Aug 1, 2014 5:32 PM

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

U.S. Energy Department conditionally authorizes Oregon LNG to export to non-free trade nations

Published on Thursday, 31 July 2014 11:22 The U.S. Energy Department announced today that it has conditionally authorized LNG Development Co., LLC (Oregon LNG) to export domestically produced LNG to countries that do not have a Free Trade Agreement (FTA) with the United States. LNG Development Company, LLC is a subsidiary of Leucadia National Corporation.

....


Oregon LNG anticipates that the gas feedstock for the project will be produced primarily from Canadian resources, with the remainder drawn from domestic resources produced from the U.S. Rocky Mountain supply basin. ...


According to Oregon LNG, the Williams system interconnects with the Spectra BC Pipeline system, and will provide access to both traditional basins and developing shale basins in British Columbia.


Doug Aug 1, 2014 9:57 PM

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

Doug Aug 1, 2014 10:04 PM

Quote:

Originally Posted by craneSpotter (Post 6676488)
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 ;)

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.

craneSpotter Aug 29, 2014 8:56 PM

Quote:

Originally Posted by MalcolmTucker (Post 6676497)
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.

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

craneSpotter Aug 29, 2014 11:10 PM

Quote:

Originally Posted by Doug (Post 6677750)
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.

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?

MalcolmTucker Aug 30, 2014 6:18 PM

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!

lubicon Sep 2, 2014 6:49 PM

Quote:

Originally Posted by craneSpotter (Post 6711317)
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?

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.

Denscity Sep 2, 2014 7:14 PM

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

lubicon Sep 2, 2014 9:37 PM

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.

MalcolmTucker Sep 3, 2014 2:49 AM

Quote:

Originally Posted by lubicon (Post 6714166)
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.

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?

Xelebes Sep 3, 2014 3:24 AM

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.


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