The president of the B.C. LNG Alliance warned the Vancouver Board of Trade that the development of export terminals in the Northwest is anything but a certainty.
In fact, David Keane said both industry and elected leaders will “need to make tough decisions” to make the industry a reality during his Oct. 8 speech.
“A new LNG industry in British Columbia is not a foregone conclusion. If LNG is going to be a viable industry in B.C., each level of government must come together with our industry and make some difficult decisions … these decisions won’t be easy, but they need to be made. Having said that, on behalf of my members, I can say with conviction that the BC LNG Alliance believes we can do this,” he said.
“Our province has robust environmental protection, incredibly talented people, a great education and health care system and a stable political environment. But we need to strike a balance … a balance that recognizes British Columbians deserve fair value for their natural resources. A balance that recognizes that our industry operates in a highly competitive global market. A balance that offers certainty, stability and a reasonable rate of return on what will be historic levels of investment in B.C.”
As with the Petronas CEO Shamsul Azhar Abbas, Keane said the cost of doing business in the province is becoming a challenge that must be overome.
“Our members must consider the full range of costs they will have to bear over the full life of their projects. The B.C. LNG Alliance is concerned about our global competitiveness, and the overall fiscal framework in British Columbia and Canada,” he said.
“B.C.’s overall cost structure holds the potential to reduce our members’ competitiveness and their ability to succeed in the global market … our members require certainty, clarity and a fiscal environment that recognizes the huge technical and financial challenges of very large and complex projects with significant risks. We need certainty, clarity and a competitive fiscal framework that includes fair federal and provincial taxation.”