Quote:
Originally Posted by craneSpotter
Yup, certainly the delayed federal approval and a drop in oil prices give them reasons to see if they can't wring out a few more $$ from the province and demand more foreign workers.
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So the drop in oil prices gives Petronas less cash to invest next year, so they want cheaper construction/engineeriing costs.
And, like mentioned, more foreign work:
Petronas wants engineering work for B.C. LNG venture to be shifted offshore
VANCOUVER — The Globe and Mail - Dec. 04 201
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Petronas plans to push contractors to shift more engineering work for a proposed B.C. liquefied natural gas venture to lower-cost centres offshore as the Malaysian energy giant squeezes suppliers.
Of the total $11.4-billion in estimated construction costs for the Petronas-led Pacific NorthWest LNG export terminal at Lelu Island, there would be $8-billion worth of imported goods and services spread over a five-year period....
...Engineering firms are expected to revise their plans with a view to greater input from “high-value engineering” offices in countries such as China and India, where labour costs for engineering work are lower than in North America and Europe. Firms wanting to do business with Petronas will be pressed to use their connections with Asian suppliers to get better deals for orders of raw materials.
Subcontractors will be asked to review their costs for an array of building plans, ranging from a work camp in Port Edward to a suspension bridge designed to avoid harming salmon habitat in Flora Bank. Drilling costs are being scrutinized at the Petronas-led North Montney Joint Venture, which has huge natural gas reserves in northeastern British Columbia.
An estimated 88 per cent of the $3.4-billion in project spending in Canada would originate from Canadian suppliers of engineering-related services, mostly from British Columbia....
...“We believe that the deferral is more of a negotiating tool than a reassessment of the viability of the project,” TD Securities Inc. analyst Scott Treadwell said in a research note Thursday.
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So , sounds most of the Canadian sourced engineering will be BC based, which is good news. No surprise about the majority of the materials being sourced overseas...cheaper and these are coastal plants so easy/cheap shipping. I still understand there will be some fabrication in North Van as well as on-site.
Also, looks like they will squeeze the Alberta gas well drillers and pipe layers to lower their prices.