Here we are near end of October and seems like the LNG push is a little stifled lately, poor economic look out for companies, companies pulling out, low oil prices etc. etc. Even our première seems a little mum lately, gotta wonder if any of this is going to take off, lots of money it seems has already been spent on speculations, and cost of housing has gone up. Just wondering
Well, the outlook for many natural gas projects, already suffering from depressed gas prices, are being challenged by the dropping price of oil per barrel (the price of nat gas is tied to the price of oil).
Apparently, the Lelu Island project is suffering from too “rigorous” of an environmental review.
And then there are companies that have been playing the speculation game.
I would argue that nothing has really changed…yes the economics of the projects have softened, but the industry is still extremely profitable.
1.) Petronas has publically stated a FID will come at the end of 2015 and last time I checked that is still over 2 months away.
2.) The delay in their federal environmental assessment is due to their own actions by re-designing their marine berth to mitigate environmental concerns. The company has stated the re-design will not impact the timing of their FID. May 2015 seems to be the date that has been given for completion of their federal environmental assessment.
3.) The provincial environmental assessment should be completed in November.
4.) Petronas has already started seeking financing for the project from major banks.
BG GROUP PROJECT:
-No changes. The group has been just as active as they usually have in the PR LNG discussion. Their timelines are further down the line, but they have indicated nothing to make one thing they will be pulling out.
-They have publicly stated to be very happy with BC LNG tax legislation and will likely be moving ahead with both of their two LNG projects based in Kitimat/PR.
Several LNG companies have stated that they are pleased with the BC LNG tax legislation and I believe only one company (Apache Corp) pulled out of the Kitimat LNG project, but that was revealed months ago, well before LNG legislation was announced. The other major partner in that project (Chevron) is still actively pursuing the project.
So again, I don’t think much has changed…if anything there has been progress to indicate that these projects are going to move forward.
Again, we just have to wait.