Before British Columbia’s LNG dreams can become a reality, there are five factors that must be addressed, according to an EY report released May 20.
Everyone in the industry, or hoping to benefit from the industry, must work together to address global competition, First Nations issues, capital allocation, fiscal policy and people, processes and costs.
Each of the five factors have the power to attract or deter investment, said EY Canadian oil and gas leader Barry Munro.
“There’s no denying B.C.’s potential in the global LNG market, but success for players won’t come easily,” Munro said.
“Investment will depend on whether LNG projects are competitive globally. Plentiful natural gas reserves alone will not support development.”
Proponents of the B.C. LNG industry need to address capital allocation decisions, build an equitable fiscal policy, work to develop world-class competencies in terms of people processes and costs and fully understand how competition will affect supply, demand and pricing.
As well, the overall framework will require support from First Nations and address capital allocation decisions.
“Working together with the various stakeholder groups to address these questions head on is the only way we stand to benefit from B.C.’s LNG resource potential,” he said.
The full report can be found here.
