Posted Feb 26, 2016, 5:46 AM
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Registered User
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Join Date: Mar 2006
Location: White Rock BC
Posts: 10,706
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I think LNG will eventually go ahead but certainly not for several years. The economics just aren't there. Prices are a shadow of their former selves and even if they rise somewhat {which of course they eventually will} there is still a huge glut on the market and far too much capacity for current demand. There are also other projects in the world far further along in development than BC's so as demand slowly rises they will quickly fill the void.
Prices are far too low right now and this is made much worse by the current problems in oil. Not only has oil fallen fast but has devastated bottom lines to where natural resource companies are bleeding red ink and have very few funds for any further developments until oil prices rise again. This has also effected many of the world's largest banks {including Canadian ones} which are undercapitalized and facing many near term write-offs due to smaller natural resource companies closing and the banks having to write-off their losses.
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