By Rich Coleman
Minister of Natural Gas Development
Dec. 23, 2013

VICTORIA - 2013 was a milestone year for liquefied natural gas in B.C. We made substantial progress over the last 12 months, laying the foundation for a prosperous future.

Our government took aggressive actions over this last year to develop a liquefied natural gas, or LNG, industry in B.C. Developing an LNG export industry in our province is an unprecedented opportunity to transform our economy and create long-lasting benefits for all British Columbians.

In February we held B.C.'s first-ever LNG conference with more than 500 participants from 192 companies spanning eight countries. The conference was a huge success and cemented our position as global player. We are holding the LNG in B.C. conference again in May 2014 - with an expanded scope and size - and registration has already begun.

To prove our commitment we created the new Ministry of Natural Gas Development in June. My ministry is responsible for working with industry to build a competitive foundation and coordinating LNG work across government. Having a stand-alone ministry sent a clear signal to industry that we are focused and dedicated.

This fall we strengthened our relationships with major proponents. In September I went up to the Northwest to visit several project sites and met with community leaders. Everything I saw was positive: the proponents were already investing millions of dollars in preliminary work, the communities were preparing for growth and people were excited about the future.

Then in October I went overseas to meet directly with interested Asian companies. Everywhere I went B.C.'s natural gas was in demand. I heard time and time again from companies that we were globally competitive, that we were taking the right steps, that we were putting the right assurances in place to address issues such as skilled labour. In fact, right before I left, PETRONAS announced its intention to invest $16 billion into B.C. to develop its project, Pacific Northwest LNG - the single largest investment in British Columbia's history.

At the end of November Premier Christy Clark also went to Asia, leading a trade mission of more than 120 companies, and LNG was her priority. She toured an LNG facility in Beijing, spoke at a natural gas forum in Seoul and signed two memorandums of understanding with Japanese governmental organizations to increase investments for natural gas development in B.C. We were both able to see first-hand the growing demand in Asia for B.C.'s natural gas.

We have worked hard throughout 2013 to build a competitive LNG regulatory environment and to develop strong relationships with major proponents and we're already seeing signs of success. One year ago we had five LNG proposals - today we have more than 12. The National Energy Board has approved seven LNG export licences for project proposals in B.C. Our actions this year have set industry up to make final investment decisions in 2014.

To get to those final investment decisions we know we need to address some policy issues. The first is the fiscal framework for the LNG sector. We have developed a tax structure that is competitive and predictable; it will provide a level playing field for industry while ensuring a fair share of the economic return is secured for British Columbians. We expect to be able to announce details soon. Finalizing this framework will give industry the certainty they need to invest.

We are also working to ensure we have the cleanest LNG facilities in the world. We continue to advance the electrification natural gas production in the northeast and are looking for other avenues to improve operations. Through all our discussions we are guided by the fact that climate change is a global issue; we need to take a global perspective. By exporting natural gas, B.C. will supply growing markets with the cleanest burning fossil fuel.

We have come a long way in the last year to making LNG in B.C. a reality. Our government's actions have helped pave the way for final investment decisions in 2014. We are acting on this unprecedented opportunity because it will create economic growth and thousands of jobs for British Columbians.

We have a vision of B.C. as a strong, prosperous and competitive economy. LNG is a key part of that vision, and with the progress in 2013, I know we will achieve it. Soon.