Northern Connector, January 23, 2015

Page 1

Inside

u NEWS Cautious approach to LNG, P. 2 u SPORTS That’s a wrap , P. 20 u NEWS Port expansion could come soon, P. 3 u CLASSIFIEDS, P. 14-21

Free Picture your bundle of joy in the Terrace Standard’s

BEAUTIFUL BABIES OF 2014!

FRIDAY, January 23, 2015

SPECIAL EDITION

Volume 9 Issue 29

USA university likes LNG, sort of

Karate kids …

By Cameron Orr

DON’T MISS OUT! If your baby was born between January 1, 2014 to December 31, 2014, we will publish their picture in colour in our beautiful babies of 2014 supplement for $37 (includes GST).

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INCLUDES FULL COLOUR! A WONDERFUL KEEPSAKE FOR YOUR PRECIOUS BABY!

Entry Deadline February 19th

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TERRACE - More than 60 excited kids have been enrolled in Karate at Suwilaawks Community School since late last year. Karate is only one of the many after school sports and arts programs offered free of charge through the Suwilaawks “InnerActive” Afterschool Program with support from RBC, JumpStart Community Partners, Terrace Shogun Dojo, Terrace Youth Sports, the City of Terrace, Kermode Friendship Centre and the Ministry of Education’s Afterschool Sports and Arts Initiative.

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KITIMAT - The prospects for liquefied natural gas (LNG) may be good, but not that good, according to a report from Harvard University’s Belfer Center. The report, called Falling Short: A Reality Check for Global LNG Exports and authored by associate professor Leonardo Maugeri, is, naturally, heavily focused on the United States’ LNG prospects, but Canada is included in his projections. And long story short, Maugeri is more confident in Nova Scotia-based Goldboro LNG in adding to LNG exports by 2020 for Canada than he is with west coast-based projects. “It has already secured a long-term customer (German E.on) for 20 years, starting in 2019, but had not received an export license as of November 2014. This is also the only scheme whose selling price formula is not oil-linked,” he writes in the report. On the west coast, “To circumvent some of the problems affecting British Columbia, Canadian natural gas developers could send their natural gas to the US west coast, where it could be liquefied and shipped to Asia. But the fate of Oregon’s LNG schemes seems very uncertain in this decade,” writes Maugeri in his paper, titled Falling Short: A Reality Check for Global LNG Exports. Maugeri’s paper, however, does seem to put U.S. potential for LNG exports at a notably higher level

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than other countries. Australia, he writes, has the worst business case globally. As well Canada, he says, “will likely by the hardest hit by the new ‘chill wind’ blowing over LNG projects.” Meanwhile he writes that the U.S. shale gas revolution “will supply relatively cheap gas for future US LNG export schemes.” even as LNG growth will fall short of expectations, he anticipates. He referred to all British Columbian LNG proposals as being planned for greenfield sites — that is sites that have no infrastructure and have not been developed before — however that’s not true for the LNG Canada proposal which owns the former Methanex site in Kitimat. This project is majority-owned by Shell Canada and it has lined up minority Asian partners who also are LNG clients. Overall though the report doesn’t say LNG is a dead market. His conclusion states that “Even a prudent and skeptical view of the evolving global gas market cannot help but recognize that soon the world will witness the largest increase ever of LNG export capacity.” As for Canada, though, under his conclusion, he states, “Also the yet-onpaper Canadian and Mozambican potential LNG exports seem to be too expensive to cope with the current market situation. This is likely to freeze their materialization till the next decade.”

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