Natural Gas Development Minister Rich Coleman (left)

Natural Gas Development Minister Rich Coleman (left)

Squamish mill site on LNG map; Clark signs agreement with Malaysia’s Petronas (VIDEO)

Woodfibre, a brownfield pulp mill site, could end up the first of B.C.'s 13 proposed liquefied natural gas exporters

A brownfield pulp mill site at Squamish could end up the first of B.C.’s 13 proposed liquefied natural gas exporters.

Premier Christy Clark has signed her second letter of intent since arriving in Asia for an LNG sales trip. It’s for one of the smallest, at Woodfibre, where the last of a series of forest operations closed in 2006. The pulp mill’s main legacy is an industrial-sized FortisBC natural gas line, which a company owned by Indonesian billionaire Sukanto Tanoto has proposed to use for an LNG export terminal.

Private ownership, a century of industrial history on the B.C. coast and the existing pipeline make the Woodfibre site one of the simpler proposals to bring online.

The largest agreement was signed Monday with Malaysian giant Petronas for export facilities at Port Edward on the B.C. North Coast. Purchase agreements from petroleum corporations in China, Japan, India and Brunei were unveiled at ceremonies in Kuala Lumpur.

Before the trip, Clark signed a similar letter of intent with a consortium headed by Shell Canada for a high-volume pipeline and LNG export facilities at Kitimat.

In an interview from Singapore, Clark said the Asian network offered by Petronas shows the world’s biggest players are responding to B.C.’s stable economy and its tax rates for gas exports. Clark said the China and India markets alone have steep growth ahead, with India Oil projecting a five-fold increase in gas use over the next decade.

“Today when you look at world events, you look at what’s happening with Russia and Crimea, you look at what happens in Africa on a regular basis, and some of the things that have happened in Australia where they’ve changed the goalposts, companies want one partner that they can trust explicitly,” Clark said. “And that is us.”

The consortium of Shell, PetroChina, Korea Gas and Mitsubishi identified their projects in Africa, Russia and Australia as competing for their investment capital.

B.C.’s biggest obstacles are the price in Asia by 2018, labour cost and building pipelines over the Rocky Mountains.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Island Health has confirmed the first long term care facility outbreak in Greater Victoria at Veterans Memorial Lodge in Saanich. (Google Maps)
Island Health records first long-term care COVID outbreak in Greater Victoria

Veterans Memorial Lodge in Saanich confirms one positive staff member

Itty, a Siamese cat, has been missing since a house fire in Victoria’s Fernwood neighbourhood on Friday, Nov. 27. Her owner says she has white fur with blonde and grey markings. (Facebook/ROAM)
Cat goes missing after house fire in Fernwood neighbourhood

‘Itty’ has white fur, blonde and grey markings and blue eyes

Westcoast Impressions plans to organize a COVID-19 friendly version of the event in 2021 at the Mary Winspear Centre after having cancelled the 2020 version against the backdrop of pandemic. The opening night of the 2019 Sidney Street Market featured more than 150 vendors lined along Beacon Avenue. (Black Press Media file photo)
Sidney Street Market plans for 2021 return at Mary Winspear Centre

Tentative plan calls for the event’s return to Beacon Avenue after COVID-19 pandemic

An aerial view over Oak Bay. (Black Press Media File Photo)
An aerial view over Oak Bay and the Marina. Oak Bay residents pay the highest taxes on Vancouver Island. Don Denton/Black Press
Oak Bay secondary suites study considers units old and new

Secondary suites draft report due in new year

(Dave Landine/Facebook)
VIDEO: Dashcam captures head-on crash between snowplow and truck on northern B.C. highway

Driver posted to social media that he walked away largely unscathed

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Top doctor urges Canadians to limit gatherings as ‘deeply concerning’ outbreaks continue

Canada’s active cases currently stand at 63,835, compared to 53,907 a week prior

A Canadian Pacific freight train travels around Morant’s Curve near Lake Louise, Alta., on Monday, Dec. 1, 2014. A study looking at 646 wildlife deaths along the railway tracks in Banff and Yoho national parks in Alberta and British Columbia has found that train speed is one of the biggest factors. THE CANADIAN PRESS/Frank Gunn
Study finds train speed a top factor in wildlife deaths in Banff, Yoho national parks

Research concludes effective mitigation could address train speed and ability of wildlife to see trains

A airport worker is pictured at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward
Canada extends COVID restrictions for non-U.S. travellers until Jan. 21 amid second wave

This ban is separate from the one restricting non-essential U.S. travel

Menno Place. (Google Street View image.)
B.C. care home looks to hire residents’ family members amid COVID-19-related staff shortage

Family would get paid as temporary workers, while having chance to see loved ones while wearing PPE

A man walks by a COVID-19 test pod at the Vancouver airport in this undated handout photo. A study has launched to investigate the safest and most efficient way to rapidly test for COVID-19 in people taking off from the Vancouver airport. The airport authority says the study that got underway Friday at WestJet’s domestic check-in area is the first of its kind in Canada. THE CANADIAN PRESS/HO, Vancouver Airport Authority *MANDATORY CREDIT*
COVID-19 rapid test study launches at Vancouver airport for departing passengers

Airport authority says that a positive rapid test result does not constitute a medical diagnosis for COVID-19

A small crash in the water south of Courtenay Saturday afternoon. Two men had to be rescued, but reports indicate there were no serious injuries. Photo by Mike Chouinard
Small plane crash in Comox Valley waters Saturday afternoon

Two rescued from plane that had flipped in water; no serious injuries reported

A photo from 2017, of Nuchatlaht First Nation members outside court after filing a land title case in B.C. ( Submitted photo/Nuchatlaht First Nation).
Vancouver Island First Nation calls on B.C. to honour UNDRIP in historic title case

Nuchatlaht First Nation says Crown counsel continues to stall the case using the ‘distasteful’ argument that the Nation ‘abandoned’ their land

Most Read