Back in 2013 Premier Christy Clark promised that LNG would make the province rich, create a $100-billion savings fund, erase all debt and employ tens of thousands of people.
None of the hype materialized, nor will it for the long foreseeable future. Thanks to a global methane glut and a collapse in methane prices by 75 per cent, the LNG industry faces “an extremely challenging business environment.”
According to Forbes, Australia’s LNG industry is now bleeding billions of dollars of cash and earning nothing for the owners of the resource: Australians. It is also noteworthy that Asian markets have contracted four per cent despite the fall in LNG prices.
As a consequence, no company has made a final investment decision on 20 LNG proposals in B.C. — with the single exception of Woodfibre, a company owned by a Singapore tycoon, Sukanto Tanoto.
It is telling that one of Tanoto’s companies, Asian Agri, has been found guilty of tax evasion. (But that hasn’t caused Clark to rethink who she invites to do business in B.C.)