Friday May 18, 2012



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Province’s big plan for Natural Gas

Victoria Times-Colonist photo

A new focus on natural gas promises to revive the economy and safeguard the environment.

The Province has released plans to develop a brand-new Liquefied Natural Gas (LNG) sector with a focus on increasing job activity across the province.

Today, the Ministry of Energy and Mines announced its Natural Gas Strategy alongside a strategy intended for developing a separate LNG sector, which the government states will build “on the foundation of the B.C. Jobs Plan to create long-term economic prosperity.”

Ultimately the province is situating itself to support future plans directed at moving natural gas from the mass reserves in Northeast, B.C. to Kitimat to be made ready for shipment to Asia.

There are also plans in the works to have three LNG plants built in B.C. by 2020. Kitimat LNG is preparing to begin construction of a plant this year, Douglas Channel LNG have plans for new plant, and Shell Oil also is planning construction in Kitimat for a seven million tonnes-a-year natural gas production plant.

“We are creating new and exciting opportunities by diversifying our natural gas sector, strengthening job prospects for British Columbians and opening the door to new clean energy projects,” said Premier Clark during an announcement held at the British Columbia Institute of Technology. “My government is positioning liquefied natural gas as a cornerstone of British Columbia’s long-term economic success.”

Peace River North MLA Pat Pimm sees the potential in this plan for the region, the province, and the environment.

“The strategy is a good one overall, it’s one that is going to help the Northeast and the Northwest, and the province in whole,” said Pimm.

“In fact I think it’s going to help the world as well and help us out with the greenhouse gas emissions issues in Asia.”

“Natural gas is the cleanest burning fossil fuel out there, so it’s the next thing to clean energy, and it has the opportunity to play an energy role in the future,” said Pimm. He agrees with the new strategy, and as more LNG projects emerge across the province there will be increased natural gas development throughout the Peace region.

The government says, “Development of LNG is expected to produce approximately $20 billion in new private sector investment.”

Furthermore, the industry is expected to create 800 new long-term jobs and up to 9,000 more jobs involving construction, as well as thousands of spin-off jobs in the fields of transportation, engineering, construction and environmental management.

The government caught praise from not only the British Columbia Chamber of Commerce but also the Independent Contractors and Business Association of B.C (ICBA).

“The government is to be commended for placing such an emphasis on our natural gas resources with the release of these two strategies,” said John Winter, President and CEO of the B.C. Chamber of Commerce.

“The LNG Strategy represents the first time in over a decade that the B.C. Government has attempted to create an entirely new industry,” proclaimed Winter. “Our economic and social future will depend on hw we as British Columbians embrace this new sector. This industry is sustainable, enhances our clean energy advantages and provides economic benefits for all regions of the province.”

The ICBA says it welcomes the government’s new “twin strategies for tapping into the province’s natural gas and liquid natural gas potential.”

“Thanks to the global economic challenges, construction today has 10,000 fewer jobs than it did at the peak in 2008,” said ICB President Philip Hochstein. “Today’s plans have the potential to unleash construction and strengthen B.C’s economy. The construction industry is looking forward to getting on the job and making this vision a reality.”

In addition to creating jobs the B.C. Government made note of the strategy’s environmental benefits, and the importance of clean energy production, citing the two new proposed LNG facilities as ones that will use “clean energy.”

According to the Province’s release, “By exporting LNG, British Columbia will fight climate change – an international concern – on a global scale.”

“B.C.’s natural gas will help with the transition to a low-carbon global economy by displacing Asia’s current reliance on other carbon-intensive fuels like coal and diesel”, said the Premier. “To protect our environment here, we also plan to introduce more ambitious means of offsetting greenhouse gas emissions such as carbon capture and storage while balancing growth.”

Matt Horne, Climate Change Director with the Pembina Institute, a sustainable energy think tank out of Alberta, responded to the government’s strategy noting that while it is positive to see future LNG plants using clean energy it does not further eliminate the greater environmental ramifications associated with natural gas production.

“British Columbia’s Natural Gas Strategy promises to rely on ‘clean electricity’ at the first two of three proposed liquid natural gas plants, which would help limit the greenhouse gas emissions associated with LNG development,” remarked Horne. “However, the strategy does not dispel the concern that shale gas development and B.C.’s commitment to reduce greenhouse gas pollution could be at odds.”

Horne went on to say, “The strategy discusses potential solutions such as electrification and carbon capture and storage, but those will only become a reality if they are backed by effective government policy. For example, government could significantly improve the business case for carbon capture and storage by broadening B.C.’s carbon tax to include vented emissions from natural gas processing plants.

“Until the province takes these necessary steps, this strategy will result in B.C. missing its greenhouse gas reduction targets.”


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