AllTheirAudits'RUs
RammedThroughLegislationVille
So scary that the VSun has posted a 'teaser':
Who is B.C. dealing with when it invites Petronas, the Malaysian state-owned global energy giant, to play a lead role in developing an LNG industry?
In the first of a two-part examination of the company by reporters Peter O’Neil and Gordon Hoekstra, The Vancouver Sun will post at 9 p.m. PT tonight, and publish in Friday’s newspaper, a story with explosive new information on the company’s problems in Malaysia...
Go figure.
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Thanks to the StraightGoods for the heads up on the Twittmachine.
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Links 12/27/24
1 hour ago
3 comments:
Ross K...I can`t remember the Vancouver Sun ever using a cliffhanger headline and invite readers back at a certain time and date.....
Need more bad BC LNG news....Johhny Wakefield is reporting natural gas leases in northeast BC are brutal, a fraction of previous years..
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Jonny Wakefield @jonnywakefield 4h4 hours ago
BC's oil & gas land sale revenues over the last 20 months. Sound effects: https://www.youtube.com/watch?v=ZHwlXIZ1yMw … … #bcpoli
https://twitter.com/jonnywakefield
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Check out this image
https://pbs.twimg.com/media/COkY-8TUsAAlLwm.png:large
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Even more bad news...Natural gas from the USA Marcellus play has gobbled up BC`s piped natural gas customers.....And The Financial Post isn`t pulling any punches, Straight to the heart....And they see LNG export as a real longshot in this competitive, saturated, in glut market.....Meaning this...Perhaps the Petronas exclusive about shoddy dangerous LNG operations and a Malaysian government in tatters, is a fanciful prelude to why the province is putting the brakes on Petronas, when in reality...
The Straight Goods already reported in August that Petronas was pulling out of BC because the economics aren`t there...Because...Gordon Hoekstra, he really has been a LNG government booster on this file....Oh, one more thing...Gordon Hoekstra actually admitted that the Petronas project is a $11 billion dollar investment, not $36 billion...hmm, $36 billion dollar investment through the media when they think the project is going forward, now that it looks doubtful Petronas`s investment just dropped by $25 billion dollars.
I think Canadian LNG is a long shot
With the Marcellus trading at under US$1.3 per mcf, analysts think Western Canadian producers may have to brace for greater discounts on the AECO benchmark.
“That might means AECO spread of $1 and may be as much as $1.50 off of Henry Hub longer term,” Ollenberger said in an interview. AECO prices have been trading at a 50 cents discount to NYMEX for much of the year.
Andy Mah, CEO of Calgary-based Advantage Oil & Gas Ltd. said market concerns are overdone, and expects a more measured 10-cent additional discount due to the pipeline shifts in the U.S.
“I am not discounting [the concerns],” Mah said in an interview. “Our gas is landlocked, we are at the end of the pipe to the U.S., but may be not as much as some of the more extreme views suggest.”
Surprisingly, AECO prices have remained roughly flat this year – a feat amid a commodity rout.
“We had our big retreat back in 2011-12, when price were hovering around US$4 per MBtu and even higher, and then we had this dramatic pulldown to US$2,” Mah said.
Natural gas production declines of 20 per cent coupled with dramatic cuts in capital expenditure should also support Canadian prices, Mah noted.
But Canadian producers find themselves increasingly trapped, especially as new pipeline proposals continue to pop up in the U.S. The 1.5bcfd Nexus pipeline, being proposed by Spectra Energy, is another project set to take Marcellus gas to Midwest, including Ohio, Michigan, and Chicago, and Ontario.
“It is coming in waves. We had a bunch of capacity out of Marcellus of 2 bcfd in the fourth quarter last year — next year we will even see more,” Ollenberger said.
The big squeeze for Canadian producers has forced many to pin their hopes on an LNG export relief valve – either in Canada or the United States, which may drain out excess supply and bring Canadian gas back in demand.
“I think Canadian LNG is a long shot,” said Rau. “And if oil sands production [which uses gas as a feedstock] slows down — look out!”
http://business.financialpost.com/news/energy/new-marcellus-pipelines-from-northeastern-u-s-squeezing-out-canadian-natural-gas?__lsa=a4a0-391a
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Stay tuned....
The Straight Goods crystal ball is merely warming up..
Cheers
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If, as the BC Govt says, there is enough natural gas in BC to last for hundreds of years, why not develop it for use in BC? Why are they so desperate to give it away as LNG?
Why not use it in BC for powering vehicles: cleaner, cheaper, avoids use of gasoline sourced from the tar sands. And it would create many jobs in vehicle conversion to natural gas. Win-win-win-win.
I'm with Hugh 1000%....here is a very good description of why its not going that way...there really must have been something in the water all of our BC elected officials and unelected bureaucrats drank while they were growing up....http://www.mcafee.cc/Bin/sb.html......clear and concise definition of sociopathy
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