[whatnext]

Originally Posted by CanSpice

It definitely is a possibility, but there's only so much influence a provincial government can have. Global markets and the individual company's finances and financial outlook have much more influence on whether or not a project goes ahead.

From todays Globe & Mail.

Petronas did Canada a favour. Just ask Australia

...To better understand the bullet that Canada dodged, consider Australia, a place where resource developers face far less onerous regulatory constraints. When gas prices in Asian markets surged past $15 per MMbtu in 2009, and again in 2012, gas producers everywhere salivated; but in Australia’s case they could act on that greed quickly. Several massive LNG projects were built, virtually simultaneously, all aiming to cash in on premium Asian prices. Environmental and fiscal hurdles were modest; and Indigenous populations in Australia have little leverage to negotiate. A new right-wing government sweetened the pot by cancelling a modest carbon tax in 2014....

...The short-lived boom affected the whole course of Australia’s economy, generating inflation, putting upward pressure on interest rates, and contributing to a skyrocketing currency – that in turn sparked massive deindustrialization (including the complete shutdown of Australia’s auto industry). The plants are now on stream (though most have suffered repeated operational breakdowns), long before a single shovel hits dirt in Canada’s LNG play. A triumph of free-market efficiency, right?

Well, not exactly. Because after construction started, Asian gas prices fell by two-thirds (not surprising given all that coming new capacity), way below break-even levels. All the plants are bleeding red ink; writedowns already exceed $10-billion for the Queensland plants. With construction work done, just a few hundred workers remain to operate the plants. One-time boom towns have been left with a massive hangover, including collapsed housing prices.

But it’s not just gas producers paying for this enormous miscalculation. Every Australian energy consumer is also paying...

https://www.theglobeandmail.com/opinion/...vour-just-ask-australia/article35856731/