Thursday, June 25, 2020

Let's Keep Throwing Billions into LNG

Whether it's the Justin Trudeau memorial bitumen pipe or strongarming the Wetsuweten to drive the Coastal GasLink project through their sovereign territory, once these projects get underway they're almost unstoppable and it doesn't matter one bit if the economic case for them has collapsed.

There's bad news for British Columbia's LNG fantasy.  The global market for natural gas is tanking.

The natural gas future markets for August have fallen to a 25-year low.


the salamander said...

..My current guess, is that far less than 1% of Albertans are aware that Jason Kenney and AIMCo bought a controlling interest in the other natural gas pipeline to Kitimat utilizing pension funds. Its situated entirely in British Columbia and running westward ho.. from foreign controlled gasfields near Dawson Creek. That it only became public on Boxing Day 2019 must have been a fluke. Sadly most of its proponent pundits somehow think it will heat Canadian homes & lower hard working middle class Albertans' household expenses.. Do they even know where Kitimat actually is ?

Hugh said...

LNG will make us rich. It will pay off BC's debt. It will clean the air in China. It will cure acne. Or something like that.

Trailblazer said...

And then some!!
Some fuckers cannot count!


The Disaffected Lib said...

Sal, when Chevron took a $2 billion write off and walked from Kitimat, unable to find a buyer for its half interest, the writing was on the wall. Yet, for a variety of reasons, none of them good, the project has become unstoppable.

A collapse in world gas markets dooms countries that have to turn their gas into LNG, load it aboard special tankers, and sail it thousands of miles to distant markets at prohibitive costs.

Hugh, that does indeed sound like what came pouring out of Christy Clark's mouth at the time.

TB, I enjoyed the clip. No one could pronounced "billions" quite like Carl Sagan.

JasonS said...

Anonymous Hugh said...
LNG will make us rich. It will pay off BC's debt. It will clean the air in China. It will cure acne. Or something like that.
Yes indeed have you ever thought of what you could do with 100 billion dollars ? How much is in the prosperity fund now ? Maybe Horgan could enlighten us. Meanwhile we are paying the highest gas prices in North America .... again. Didn't they have a commission or something ? WTF does the NDP do anyway besides carry the Liberals water until they are ready to start pillaging again. Oil is 40 dollars a barrel and a month ago it was worth nothing now we are paying 135 a litre . Imagine the bill we will get when the resource companies pack up an leave , and we have to clean up thousands of leaky abandoned wells and billions of gallons of poisonous oilsands tailings. Hopefully Alberta will secede then and we won't get stuck with that half a trillion dollar bill.

Anonymous said...

While a liter of gas is a dollar in the southern part of Alberta. Alberta is over priced, unregulated and under served. Anyong

The Disaffected Lib said...

I expect it'll be the ultimate "dash'n dine" when the energy giants bail on Athabasca, Jason. They weren't forced to set aside money when world oil prices were soaring. Why would they fork over what the Alberta government estimateds could approach a quarter trillion dollars when the Tar Sands crater?