BC LNG Alliance
Transcript of BC LNG Alliance
BC LNG AlliancePrince George City Council
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Members
BC Alliance represents 7 of BC’s leading LNG proponents 2
E)f(on Mobi I_ Kitimat LNG Chevron -- --&2 •
Joint venture companies
GCANADA Opportunity for British Colu mbia. Energy for the world
• PRINCE ~~ RUPERT Altalias Idemitsu Kosan LNG
• • • ·••:. Pacific
'•• Northwest !Lffe!Jrt; •
Woodfibre LNG
Mission
Foster the growth of a safe, environmentally and socially responsible and globally competitive LNG industry in BC
• Engage with First Nations, communities and stakeholders• Develop policies to enable industry to reach its full
potential• Provide public with reliable information• Develop industry to highest environmental and safety standards
Tens of billions of dollars required to build BC’s LNG industry 3
LNG in BC – challenges
• Competition from other countries• Low oil and natural gas prices • Costs are becoming an even greater issue• Labour – will there be enough?• Environmental challenges
British Columbia is not competitive 4
Source: http://www.eia.gov/todayinenergy/detail.cfm?id=20992
Canadian Natural Gas Exports to US are in Decline – Require New Markets
EIA expects US to be a net natural gas exporter by 2017
BCt LNG~
U.S. net natural gas trade 2005-40 trillion cubic feet
8
4
0
-4
-8
-12
-16 2005
History Projections
2010 2015 2020 2025
net imports
~ ~ --------High Oi Pr"ce
2030
,__, ___ High o· and Gas Resource
2035 2040
Global LNG Competition is SignificantCurrent and Emerging LNG Exporting Countries
Source: CAPP
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Norway•
Algeria*
Qatar *'ln Libya * * ~ 1"
Egypt fAE
* Oman
Guinea* * Nigeria Yemen
* Tanzania Angola*
* Mozambique
* Active LNG Exporters * Emerging LNG Exporters
* Russia
Malaysia* * Brunei
Indonesia* * Australia
* Currently Deliver and Expanding
• Asian LNG Importers * Canada -70mtpa (or 9.3 bcf/d)
Alaska * (USA)
West Coast * (USA)
. - --lwcw - ~--01000 ~ :,000 ,ICO) IQOO ~
* Trinidad
Peru*
US LNG export terminalsU.S. Export Terminals
Approved – UNDER CONSTRUCTION
1. Sabine, LA: 2.76 Bcfd (Cheniere/Sabine Pass LNG)
2. Hackberry, LA: 1.7 Bcfd (Sempra–Cameron LNG)
3. Freeport, TX: 1.8 Bcfd (Freeport LNG Dev/Freeport LNG Expansion/FLNG Liquefaction)
4. Cove Point, MD: 0.82 Bcfd (Dominion–Cove Point LNG)
5. Corpus Christi, TX: 2.14 Bcfd (Cheniere –Corpus Christi LNG) (CP12-507)
As of October 20, 20152
11 2233
44
55
Source: US Federal Energy Regulatory Commission
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LNG in BC – opportunities
• First Nations• Large natural gas resources• Cold climate – ~25% increase in production capacity• Close proximity to Asian markets• Significant political support – federal and provincial• Asian economies will grow and need energy
8BC is the natural gateway to Asian markets, but must be competitive
9IEA states that natural gas = 75% of energy demand in 2040
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50% INCREASE IN NATURAL GAS
PRODUCTION REQUIRED TO MEET 2030 GLOBAL DEMAND
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Global natural gas consumption – Billion cubic feet per day (bcfd)
129169
92
11363
11853
61
Rest of World
North America
2030
Asia
Europe
461
2014
337
Emerging markets driving growth in gas demand – LNG is likely to meet most of this
SOURCE: GEP – Energy Insights (April 2015)
PERCENT OF 2014 - 2030
GROWTH (%)
44
17
32
~25% of new global natural gas consumption by 2030 will likely be met by LNG
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Millions moving into middle class = increase demand for energy 11
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2,200,000,000 NEW MIDDLE CLASS
CONSUMERS BY 2030
BC natural gas is part of the solution to reduce global emissions 12
BC )> r
' -)>
LNG z n m
4000 DEATHS PER DAV IN CHINA
DUE TO AIR POLLUTION
40 Cigarettes EQUIVALENT TO BREATHING AIR IN BEIJING FOR JUST ONE DAV
3,300,000 GLOBAL DEATHS DUE TO
AIR POLLUTION PER YEAR
6,600,000 ESTI MATE FOR 2050
1% PERCENTAGE OF CHINA' S
500 BIGGEST CITIES MEETING WHO AIR
OUALITV STANDARDS
75% ASIA' S SHARE OF GLOBAL A I R POLLUTION DEATHS
BC GHG emissions = 0.0002% of global GHG emissions
Global Greenhouse
Gas Emissions 11%
EUROPEAN UNION
1.7% 0 .0002%
CANADA BRITISH COLUMBIA
SOURCE: WORLD RESOURCES INSTI TU T E BUSINESS COUNC IL OF BC
Conclusion
• Industry must be globally competitive
• Work with First Nations partners
• Industry will invest billions of dollars
• Fair return to British Columbians for sale of natural gas
• Tens of thousands of new jobs• Work with governments at all levels
Tens of billions of dollars will be invested to build LNG industry 15