Premier Christy Clark and Prime Minister Stephen Harper have provided permits and investment credits to establish a liquefied natural gas export industry in B.C.

Prospects for B.C.’s biggest investment

Premier Christy Clark and Prime Minister Stephen Harper have set a path for LNG industry in B.C.

VICTORIA – Now that the political back-and-forth is over, there are two questions left about the Petronas-led proposal to make the biggest private-sector investment in B.C. history.

Will it actually happen? And is it a good deal or a bad one?

Premier Christy Clark ducked the first question on the day the project agreement for Pacific Northwest LNG was approved by the B.C. legislature.

“After many predictions about the Canucks and the Alberta election, I don’t make predictions any more,” Clark said. “But I can say that this project has gone farther than any of our critics said that it would.”

For what it’s worth, my prediction is on record: it will go ahead. The latest evidence is the company’s continued, costly effort to gain federal and local approval for a suspension bridge to Lelu Island to minimize the marine impact. Lax Kw’alaams Band members could not have had details on that change from an underwater pipeline when they voted to oppose the project in May.

Is it a good deal? The mayors of Prince Rupert and Port Edward have made their views clear – they see it as a lifeline for an area that has struggled for years with a faded forest and fishing industry.

The B.C. NDP is also now clear, having voted against the project agreement in the brief summer session of the legislature that concluded last week. Whether the project proceeds or not, this will be a key election issue in 2017.

NDP leader John Horgan and other MLAs made much of the lack of job guarantees, pointing to similar projects in Australia.

Natural Gas Development Minister Rich Coleman issued a statement with excerpts from the state of Western Australia’s agreement for the Gorgon LNG project. The so-called guarantees contain qualifiers like this: “… except in those cases where … it is not reasonable or economically practical to do so, use labour available within Western Australia.”

Obviously there were no job guarantees, which could only exist in a command economy, in other words a communist dictatorship.

Everyone agrees that specialized trades such as welding alloys for low-temperature operation will be brought in. And LNG processing trains will be shipped in pre-fabricated from places like South Korea, as they have been in Australia and elsewhere.

Pacific Northwest LNG is on record with federal regulators that in the latter stages of construction, the use of foreign labour for the project could reach 70 per cent. Does that make it a bad deal?

Perhaps B.C. could attempt to develop this expertise from the ground up. It seems to me that was tried with aluminum ship fabrication, and it didn’t work out too well.

For David Keane, president of the B.C. LNG Alliance, the question is how many large LNG projects, pipelines and all, can be managed at the same time as the Site C dam is being built. It was skilled labour shortages, and particularly a shortage of supervisors, that caused Australia to lose some of its proposed projects.

Keane said all LNG proponents here want to use as much local labour as they can, because it’s less expensive and it builds local support. And he disagrees that B.C. is a sweet deal for the industry. Among other things, pipelines have to be built across two mountain ranges.

Not only that, B.C. producers would pay an LNG income tax, which is a first in the history of the industry. Add to that PST, GST, payroll taxes, municipal taxes and federal and provincial corporate income taxes. Add aboriginal revenue sharing, and we have a deal.

Tom Fletcher is legislature reporter and columnist for Black Press. Twitter: @tomfletcherbc

 

Just Posted

Tofino’s first Jazz Festival swings into town this weekend

“I wanted a night of music were you didn’t have to go through fences to access the music.”

UPDATE: Construction on Hwy. 4 halted after tree crashes into traffic

Trees are being cleared along the highway between Port Alberni and the Tofino-Ucluelet junction.

GoFundMe page launched for families of three missing Tla-o-qui-aht First Nation fishermen

Men have been missing since their vessel capsized near Tofino on June 15.

115 new wildfires burning across B.C. due to 19,000 lightning strikes

More fires expected to start today, says BC Wildfire Service officials

Marijuana to be legal in Canada Oct. 17: Trudeau

Prime Minister made the announcement during question period in the House of Commons

B.C. BMX kid wows GoPro with homemade video

Eight-year-old Rex Johnson wins award for inventive video

Blue Jays closer Roberto Osuna suspended for 75 games

23-year-old pitcher faces assault charge

Vancouver Canucks tab Quinn Hughes with No. 7 overall pick in NHL draft

University of Michigan standout was second defenceman picked in first round

Gun, drugs and cash seized in arrest of alleged B.C. fentanyl dealer

Vancouver Island man Brent Connors is facing nine charges in relation to investigation

Jogger spent two weeks in U.S. detention centre after accidentally crossing B.C. border

Cedella Roman, 19, crossed the border while out for a run

PHOTOS: Police rescue baby seal found on rocky B.C. shoreline

Marina Mammal Rescue Centre recommends residents observe from a distance

B.C. woman with severely disabled son keeps getting parking tickets

‘There has to be something they could do’

Man brandishes axe during robbery

Mounties were able to locate the suspect within two hours of the incident

‘Creep off’ reporting system aims to track street harassment in Metro Vancouver

Text-based hotline launches to collect public reports on where and when harassment occurs

Most Read