Wednesday, February 20, 2019

Steelhead LNG....Certainty, Schmertainty.

All'RInvestorsShouldBe
YouVille


So.

Why, according to Steelhead themselves, have they stopped 'work' on their LNG facility that was supposed to float in Alberni Inlet on the westside of Vancouver Island?

Susie Quinn, writing for the Alberni Valley News has the pull quote, direct from the mouth of the horse's spokesthingy:

...Steelhead LNG manager of communications Matt Skinner said the decision to cease work on the Kwispaa project comes down to economics. “Given the current environment in B.C., investors really need a greater degree of certainty before investing in a project such as ours,” he said Monday. “We’ve paused (work) on Kwispaa for now and are evaluating.”...


And where, exactly, did all that 'certainty' for Mr. Skinner et al's., 'investors' go?

Grant G, who knows a whole lot about all things LNG, has this take:

...Steelhead LNG can remove these expensive pipeline issues (that involve crossing Strait of Georgia and Van Isle) by locating to Prince Rupert...Kitimat..Dish Cove, Ridley Island...But they're not...This was always a pump and dump scam...either that or they thought by conning First Nations, promising economic prosperity, announcing a series of milestones crossed they could convince a naive BC Government to expend $billions of dollars to deliver natural gas to a fly-by-night group of private investors without a pot to piss in...
(stuff in brackets and the bolding are mine)


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Now.

With all that as a preamble, get ready for the following, because I don't think you have heard me say this before...

In this case I think Grant has actually understates his case.

Why?

Because I do not think that the fine folks from Steelhead, at the time that they conceived of all their most sparkly of plans, were hoping to work over a 'naive' government.

Why do I think this?

Well...

'Nuff said?



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8 comments:

Danneau said...

Both Adam Olson and Keith Hunter had trenchant comments on the folding of Kwispaa.
Quoth Hunter:
https://www.facebook.com/groups/261238037333368/permalink/1042377975886033/

Olson's take:
https://adamolsenmla.ca/huu-ay-aht-left-to-announce-that-steelhead-hits-pause-on-kwispaa/

Olson is, of course, MLA and Malahat Nation, whose leadership had embroiled the people in part of this same scheme. Hunter lives here in Alberni and has long and broad experience with fossil fuel purveyors going back to his days in Oklahoma.

We went through a lot of the same rigamarole with the Raven Coal proposal, a proposed aluminum smelter and various co-generation proposals. If I were going to be part of this, it would be in the guise of proposal writer or lawyer.

Grant G said...

Thanks Ross...I didn't mention Geoff Plant in my latest Steelhead post...But I have mentioned him in the past..

To be precise

"This proposal will never happen, never be built, a foolish pipedream, ...Steelhead LNG is not an energy company, they have no assets, they own no LNG facilities, they own no upstream drill properties, Steelhead LNG is a group of people, including BC Liberal Geoff Plant and some other people with expertise in the energy game, but to be clear they have no financial means to back up their silly proposal..

I feel bad for Vancouver Island First Nations who have drank the LNG koolaid"

in was written in a 2015 post...British Columbia LNG industry..The Last Gas(p) A Straight Goods Special ..

http://powellriverpersuader.blogspot.com/2015/08/british-columbia-and-lngs-last-gaspa.html

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However, you are probably correct Mr. K....Geoff Plant perhaps was promised by the former BC Liberal government he was a part of(including in the thick of the BC Rail theft)that they would deliver gas to their proposed monstrosity...

But things change(thankfully)....

Steelhead's proposal is a "floating facility".100% Chinese made floating LNG plant.....They don't need to be on Van Isle West Coast...Steelhead's project(as is)..requires a pipeline from northeast BC..to the south coast, ..then an under sea pipeline, on the bottom of the Georgia Straight, then a third pipeline to cross Vancouver island...total length, over 1100 kilometers..not counting to underwatter pipeline....They have no idea how to get the gas to Sarita bay for less than $15 billion dollars....the Westcoast connector pipeline to feed LNG Canada's project in Kitimat is half the length..and..estimated cost for LNG Canada's pipeline..$6.4 billion dollars.....Steelhead's pipeline is triple trouble, and triple cost...

need more?....you can read about Steelhead's vague pipeline route(I mean very vague) here..

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“The proposed route for the pipeline begins in the Chetwynd area, parallels existing multi-utility corridors near Williams Lake, and branches off towards the south coast, with options through the Coast Mountains, and with a subsea crossing to Vancouver Island to end at Kwispaa LNG, which is on the west coast of the island,” Pipeline News Network reports"

https://theenergymix.com/2019/01/23/steelhead-lng-proposes-fracked-gas-pipeline-from-chetwynd-b-c-to-vancouver-island/?utm_content=buffer9ac8a&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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See that Ross...no chosen route through coast mountains???? and how vague the details on the underwater crossing are...and, they fail to mention the Vancouver Island pipeline crossing through rugged untamed land.....

This project is dead...funny stuff, that Steelhead pipeline crossing(s) article was written last month...I wonder what happened?..and it happened in a big rush...I suspect that Steelhead directors, including Geoff Plant approached the Horgan Government and brought up the pipeline(s) issue and how they needed untold $billions from government to make it happen......

What happened next>>>Horgan and his Government said...HELL NO!

Thus Steelhead LNG slammed the door, shut down scheme and the rest is history...

Cheers Eyes Wide Open

Grant G said...

Perhaps Bob Mackin..or some other legislative inquirer should FOI the BC Government to see if Steelhead's people recently, as in days ag met with John Horgan or his top staffers...My guess they did...because, like I said...that vague Steelhead pipeline(s)article was posted on January 23/2019...less than a month ago...Something happen very recently..something that sent Steelhead and Geoff Plant packing..!

Cheers

Keith said...

Err.. It looks like, if this is the same Steelhead LNG, have tried this on before.


https://www.timescolonist.com/news/local/malahat-lng-project-scrapped-1.23111355

Any bets they will try for a third time.?

Lew said...

From Steelhead’s website:

“Azimuth Capital Management is an investor in Steelhead LNG.”

From Azimuth’s site:

“Azimuth has thoughtfully assembled a valuable portfolio of differentiated energy resource businesses, complimented by lower risk, growth oriented and carbon transition opportunities in energy infrastructure and technology.”

Azumith’s Advisory Board includes, Stephen Harper
“22nd Prime Minister of Canada, Chairman and CEO of Harper & Associates. Stephen sits on the board of an Azimuth portfolio company.”

The Aboriginal Multi Media Society reported in 2015 that,

“On Feb. 19, Harper announced a series of tax breaks for new LNG plant construction, including a 30 per cent capital cost allowance on equipment and 10 per cent on buildings.”
https://ammsa.com/publications/windspeaker/huu-ay-aht-lng-project-moves-forward-despite-market-uncertainty

Apparently it wasn’t enough.

I wonder if the Advisory Board’s Mr. Harper advised Azumith to “thoughtfully” modify a certain portfolio by subtraction?

Hugh said...

Instead of exporting BC natural gas, as LNG, to be burned elsewhere, why not burn it here? It gets cold in BC. Heating with electricity is going to get even more expensive, thanks to the BC Liberal energy policies.

Anonymous said...

kinda like a failed IPP?

RossK said...

Danneau--

Thanks very much for that - very helpful on-the-ground POV's

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Got it Grant - thanks....Knew you had all that stuff in your head/at your fingertips.

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Keith--

Absolutely. Grant G and I both reckoned that the Saanich Inlet thing was just a strawmannequin dressed up as a sparkly pony in drag that was designed to make the Sarita Bay plan look 'good' in comparison


As for the third time? Why not propose dredging a tanker path up the big muddy to Hope or some such (ridiculously ridiculable) thing?

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Lew--

Amazing what you find when you follow the money men, eh?


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Hugh--

Interesting point...Wasn't that once a goal of the Lotuslandia Dipperians?

NVG?

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Anon-Above--

Kinda.

Except - in this (as far as we know) there were no guarantees to buy the 'product' at ridiculously inflated prices in perpetuity.

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