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Investing in LNG is a lot of hot air

"Assuming the average production of a single LNG Terminal is 5mmtpa, the 30mmtpa means 6 new terminals! However …"
Letter to the Editor generic image.indd
Letter to the Editor

That the Conference Board of Canada came out with a new report outlining the impacts associated with 30 million tonnes per annum [30mmtpa] LNG in British Columbia. [$6.9 billion in spending and 65,000 jobs annually nationally].

I would like to highlight that this is currently a totally unrealistic scenario! Assuming the average production of a single LNG Terminal is 5mmtpa, the 30mmtpa means 6 new terminals! However …

• The Pembina Institute has recently stated that without implementing the Climate Leadership Team’s [created by the BC government] recommendations, any significant LNG development makes the province’s legal GHG reduction targets unachievable.

Clean Energy Canada recently concluded renewable power will quite possibly become cheaper than the LNG sales prices needed to justify the cost of LNG investments. This is a significant investment risk—before including carbon pollution costs.

• Several countries have LNG terminals that have just come on line or will be soon. There will be a global glut of LNG and low prices will follow.

• Demand for LNG is decreasing in countries like Japan which is re investing in safer nuclear.

To me, investing heavily in LNG is nonsense.

Mike Geisler

Bonnington, B.C.