The Canadian Association of Petroleum Producers (CAPP) was in Prince Rupert last week to discuss the development of LNG in the region.
Geoff Morrison, CAPP’s manager of B.C. Operations, said the organization was hoping to not only talk to people about the current industry and address concerns people may have, but to get a better idea of what those concerns are. However, he said accessing Asian markets through terminals proposed in Prince Rupert and Kitimat is vital to the flourishing LNG industry being experienced in the Northeast and Alberta.
“There is an abundance of supply in Canada and the U.S, so the industry is up dramatically, but we now ship less to the U.S. Which has been our traditional market … market diversification is fundamentally important to the industry in Canada and particularly in the west,” he said, noting time is a factor as Asian countries look to fill their energy needs.
“There is some urgency to it for sure because of emerging industries in countries like those in Africa … we can bring that natural gas to large economic hubs in Japan, China and Korea … if we can get these ongoing relationships with them, then we can create long-term benefit.”
Aside from jobs both on the coast and in the Northeast, Morrison said a strong LNG industry would benefit people across the province.
“In the last decade, LNG royalties were larger than stumpage fees … at the high-water mark in 2008, the industry paid $2.5 billion in royalties to the province. That is now diminished, but it is still hundreds of millions of dollars being paid,” he said.
“It brings great economic benefits locally and to the province. Economic diversification can bring new revenue to the province for services people rely on … we need to maximize these benefits.”
During the stop in Prince Rupert, CAPP met with the Chamber of Commerce, elected officials and those involved in skills training. Morrison said they didn’t have the opportunity to meet with First Nations this time, but that CAPP would be back on the North Coast.
“This is really the first of more to come,” he said.