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