Exxon's L.N.G. cancelled. Thanks, N.D.P.

[Pete Podoski]

DECEMBER 20, 2018 / 7:11 AM

ExxonMobil shelves Canada LNG export project

Ekaterina Kravtsova


LONDON/HOUSTON (Reuters) - U.S. oil major Exxon Mobil Corp (XOM.N) has withdrawn its WCC liquefied natural gas (LNG) export project in Canada from an environmental assessment, it said on Thursday, signaling that the project has been shelved.

The decision to pare its LNG project portfolio follows the decision by a Royal Dutch Shell-led group to build a giant LNG project in British Columbia to supply Asian customers, and Exxon’s focus on LNG projects in Asia, the Middle East and the United States.

Exxon’s West Coast Canada (WCC) LNG export project in British Columbia was expected to produce around 15 million tonnes per year of LNG, with plans for further expansion up to 30 million tonnes per year.

https://ca.reuters.com/article/business ... J1ZO-OCABS

[Cactusflower]

^^That has nothing to do with our government. It's simply a business decision based on profits. And I and our planet are breathing a sigh of relief. It went against our plan to reduce GHGs. Time for all governments and industries to get with the alternative renewables program.

[OKkayak]

^^That has nothing to do with our government. It's simply a business decision based on profits.

It's a business decision based on companies tired of sitting around, twiddling their thumbs and waiting for this Government to make an actual decision during their Governance.

[Mark1111]

Not surprised and I can't blame them. I wouldn't touch investment in this province under this government...and the Federal government's inability to get anything done doesn't help.

[Omnitheo]

this province has plenty to invest in. It just isn't all oil related.

Unlike what many conservatives or albertans may believe, there is more to industry, investment, economy, employment etc than fossil fuels.

Fossil fuels also stand to cause detriment to the other industries BC does rely on. So I can't really fault the position of the NDP.

The NDP did campaign against this. But this should be an area they are open to compromise in for a few reasons:
The pipelines are affecting more than just BC
The NDP do not have a full majority support in the province.
other polls have indicated that british columbians are mostly in favour of the pipelines.

I believe this is something that the NDP should hold a referendum on. And if the results are in favour of the pipeline, they should at the very least conduct proper studies of the impacts, and how to mitigate these with the intention of ultimately moving forward with the project (albeit in the most risk free fashion).

[hobbyguy]

While a poor investment climate in BC because of the BC NDP/LEAP, and especially George Heyman, may have played a small role, the apparent going forward of the Kitimat project is likely a big reason for this decision. Exxon had a clear view of what the BC NDP/LEAP were up to - right down to the fine details - and may have simply decided that they can make more money investing elsewhere, especially as not being "the only game in town" would require competing both for supply and customers.

In other words, I wouldn't read too much into this decision. While the BC NDP/LEAP usurper government may have been "icing on the cake", it is highly likely that other factors were key in this particular decision. It appears to be very largely a business decision like many I have seen, where you have competing projects and a limited pool of capital, so only the projects at the top of the heap get chosen.

Much as I would love to blame the BC NDP/LEAP for this one, that would be disingenuous.

[twobits]

While a poor investment climate in BC because of the BC NDP/LEAP, and especially George Heyman, may have played a small role, the apparent going forward of the Kitimat project is likely a big reason for this decision. Exxon had a clear view of what the BC NDP/LEAP were up to - right down to the fine details - and may have simply decided that they can make more money investing elsewhere, especially as not being "the only game in town" would require competing both for supply and customers.

In other words, I wouldn't read too much into this decision. While the BC NDP/LEAP usurper government may have been "icing on the cake", it is highly likely that other factors were key in this particular decision. It appears to be very largely a business decision like many I have seen, where you have competing projects and a limited pool of capital, so only the projects at the top of the heap get chosen.

Much as I would love to blame the BC NDP/LEAP for this one, that would be disingenuous.

Accurate assessment. Capital expenditure is risk/reward analysis. In the current market, horns are pulled in. It does not mean anything more than investment opportunities are constantly evaluated for where the return best suits the Investors business model in current market conditions.
This investment decision had squat to do with the NDPG.

[hobbyguy]

More information emerges: https://www.theglobeandmail.com/business/article-exxon-mobil-opts-to-shelf-25-billion-bc-lng-project/

"While the BC NDP government supports Shell-led LNG Canada, the province has discouraged any new LNG megaprojects in a bid to meet provincial climate targets for reducing greenhouse gas emissions."

I also note this interesting development:

"All 20 elected Indigenous bands along Coastal GasLink’s route have signed project agreements with TransCanada, but a group backed by key Wet’suwet’en hereditary chiefs remains opposed.

On Dec. 14, a B.C. Supreme Court judge granted an interim injunction for Coastal GasLink to remove the Unist’ot’en blockade at the Morice River Bridge. But anti-pipeline activists have thrown their support behind outspoken Wet’suwet’en members such as those from Dark House, one of 13 hereditary house groups. Hereditary leaders of five Wet’suwet’en clans are also vowing to prevent pipeline construction on traditional territory known as Unist’ot’en."

So there are deals with ALL of the FNs, but now "clans" and "houses" are trying to block things. Huh? When is a deal not a deal? I do note, however, that in a previous case the SCOC denied a "hereditary chief" the claim of overriding an elected FN councils decision.

[Mark1111]

More information emerges: https://www.theglobeandmail.com/business/article-exxon-mobil-opts-to-shelf-25-billion-bc-lng-project/

"While the BC NDP government supports Shell-led LNG Canada, the province has discouraged any new LNG megaprojects in a bid to meet provincial climate targets for reducing greenhouse gas emissions."

I also note this interesting development:

"All 20 elected Indigenous bands along Coastal GasLink’s route have signed project agreements with TransCanada, but a group backed by key Wet’suwet’en hereditary chiefs remains opposed.

On Dec. 14, a B.C. Supreme Court judge granted an interim injunction for Coastal GasLink to remove the Unist’ot’en blockade at the Morice River Bridge. But anti-pipeline activists have thrown their support behind outspoken Wet’suwet’en members such as those from Dark House, one of 13 hereditary house groups. Hereditary leaders of five Wet’suwet’en clans are also vowing to prevent pipeline construction on traditional territory known as Unist’ot’en."

So there are deals with ALL of the FNs, but now "clans" and "houses" are trying to block things. Huh? When is a deal not a deal? I do note, however, that in a previous case the SCOC denied a "hereditary chief" the claim of overriding an elected FN councils decision.

So now industry has to engage (bribe) every little self proclaimed chief-wannabe before anything gets done? How long will this circus go on before the Feds grow a pair?

[hobbyguy]

^^ actually, this has nothing to do with the feds. As I pointed out, the SCOC has already ruled against such stuff. Note though that anti-pipeline activists (you know, the ones that Tides fund) are in there stirring the pot - "red washing" their agenda...

[Mark1111]

^^^The point I meant to make (poorly I admit) was that we can expect the same level of roadblocks when the pipeline negotiations resume. Not that I think anybody but the federal government has expressed an interest in being involved anymore.

[butcher99]

zero to do with the NDP. I blame the BC "Liberal" party. WHy not. makes as much sense as blaming the NDP

[Queen K]

DECEMBER 20, 2018 / 7:11 AM

ExxonMobil shelves Canada LNG export project

Ekaterina Kravtsova


LONDON/HOUSTON (Reuters) - U.S. oil major Exxon Mobil Corp (XOM.N) has withdrawn its WCC liquefied natural gas (LNG) export project in Canada from an environmental assessment, it said on Thursday, signaling that the project has been shelved.

The decision to pare its LNG project portfolio follows the decision by a Royal Dutch Shell-led group to build a giant LNG project in British Columbia to supply Asian customers, and Exxon’s focus on LNG projects in Asia, the Middle East and the United States.

Exxon’s West Coast Canada (WCC) LNG export project in British Columbia was expected to produce around 15 million tonnes per year of LNG, with plans for further expansion up to 30 million tonnes per year.

https://ca.reuters.com/article/business ... J1ZO-OCABS

Oh Pete,

Deja Vu?

I feel this when I think back to Rwede being so brave as to take me up on a specific challenge. I said Petronas pulled out due to market forces but IF everyone else was right, would they come back to BC for LNG deals IF the NDP were gone.

He said, "Yes."
I said, "No."

What do you think would happen?

[butcher99]

I feel this when I think back to Rwede being so brave as to take me up on a specific challenge. I said Petronas pulled out due to market forces but IF everyone else was right, would they come back to BC for LNG deals IF the NDP were gone.

He said, "Yes."
I said, "No."

What do you think would happen?

The table has been set. First by the "Liberals" and then over set by the NDP. They will be back as soon as they get billion dollar subsidies like the liberals offered and then the NDP raised. Natural gas is now in over supply thanks to fracking. (not a cut at fracking btw) The US Australian and Canada and other countries have more than they can sell or use. Like Amazon fishing for billion dollar subsidies to build a new plant that is the only way this will go forward.
It has nothing to do with the Liberals, Greens, or the NDP. Why would they build a huge plant in Canada with little to no government money when some other country is willing to foot part of the bill without the hassle of environmental regulations.

[Urban Cowboy]

^^ Whoa I think hell must have frozen over, given that I agree with that post.