BC Gov News

Community, Sport and Cultural Development Minister Bill Bennett has wrapped up meetings with community leaders in Terrace and Kitimat as the province leads discussions on the opportunities, benefits and challenges expected as a result of Liquefied Natural Gas (LNG) development.

Bennett met with many stakeholders including Haisla leadership, Terrace's mayor and council and Kitimat's mayor and council, as well as community representatives from business and economic development. Topics of discussions included how to manage growth and what the Province can do specifically to assist in ensuring that the LNG opportunity is realized.

LNG export potential in B.C. is unprecedented in scale and is expected to generate thousands of jobs and billions of dollars in new investment, plus new revenues for government to help future generations of British Columbians. Over the next several weeks, the provincial government will continue to reach out to the region and continue discussions on how best to plan for growth and maximize the expected benefits in the region.

Quotes:

Bill Bennett, Minister, Community, Sport and Cultural Development -

"There is no doubt local communities view LNG development as an unprecedented economic opportunity for the Northwest and are focused on how to capture the benefits and manage the challenges of growth. This is an opportunity that most countries and sub-national jurisdictions could only dream of and I plan to work closely with the region to ensure they are prepared for and have a say in how the benefits are realized."

"Spending time in the region, hearing from the communities what the challenges are and seeing first-hand how anticipated LNG development is already bringing significant economic activity was impressive. I look forward to coming back and to further consultation with communities, as we continue to ensure we are working together as we prepare for the growth and opportunity ahead."

Ellis Ross, Chief Councillor of the Haisla Nation -

"The Haisla understand that the LNG projects in our territory offer a better future for our people, and for all British Columbians. We have to ensure that these projects are built and are able to meet the window of opportunity that is available. We are pleased that Minister Bennett understands this urgency."

Mayor Joanne Monaghan, District of Kitimat -

"The District of Kitimat appreciates that Minister Bennett took the time to visit the Northwest and engage with the communities in this region in meaningful discussion about the development of this unprecedented opportunity. We look forward to continuing to work with the Province and other partners - including our residents, First Nations and businesses - on the development of this exciting opportunity and what it means for our community."

Mayor Dave Pernarowski, City of Terrace -

"We are pleased with the minister's efforts in regards to the LNG projects proposed for our region. He has made it a priority to build a connection with members of northern communities and First Nations to gather their unique perspectives on our area."

Gerry Martin, director, KT Land Development Society Northwest -

"Local communities like ours are struggling to balance the impacts of the looming economic boom and the subsequent increased demand for services with our fiscal ability to pay for those services. Minister Bennett's efforts to get ahead of the curve, by visiting our area and meeting with local officials, are great initial step towards crafting a plan that will successfully address the challenges."

A backgrounder follows.

Contact:

Matt Gordon
Communications Director
Ministry of Community, Sport and Cultural Development
250 953-3677 (office)
250 896-4923 (mobile)

BACKGROUNDER

Over the next 20 years, global demand for natural gas is expected to rise dramatically, fuelled by rapid economic growth in Asia. British Columbia is well positioned to compete for a share of that lucrative market by creating an LNG industry which will turn traditional natural gas into a stable, shippable form.

Developing LNG export potential in B.C. is an excellent investment in our future. It will generate thousands of jobs and billions of dollars in new investment. That will mean more revenues for government to help future generations of British Columbians.

Supply

• B.C.'s shale resource is approximately 1,200 trillion cubic feet (tcf).

• Five larger LNG plants would require four tcf per year for production. Based on this estimate, 400 tcf could support LNG exports for about 100 years.

• As technology evolves, the Province expects additional untapped deposits of natural gas to come into play.

• Industry estimates the Montney and Horn River Basins contain 262 tcf of natural gas, which makes them two of North America's most promising natural gas plays. A good portion of these two deposits is marketable. As technology improves, government is confident a greater proportion of these shale gas deposits will be available.

Demand

• Presently, the Province is in the process of considering as many as five proposals for LNG projects. If all comes to fruition, the projects would contribute more than $1 trillion to the provincial economy over the next 30 years.

• Under the BC Jobs Plan, the Province is working toward three LNG plants becoming operation by 2020, with one up and running as early as 2015.

• Presently three projects - Douglas Channel, Kitimat LNG and Shell - have received export licenses from the National Energy Board, and the Province anticipates at least one of these projects will be in a position to make an investment decision in 2013. LNG Canada has also applied for an export licence.

Jobs and the Economy

• This fiscal year, government anticipates natural gas royalties will reach approximately $157 million, growing to an estimated $263 million next year, and $363 million in 2014-15.

• The Canadian Energy Research Institute estimates direct employment in B.C.'s natural gas sector will grow to as many as 40,000 people by 2035, a significant increase from 12,000 people employed in the natural gas industry as of 2010.

• An increase in natural gas jobs will support B.C. families, and strengthen local businesses and communities.

Benefits to All British Columbians

• Revenue to the Province from natural gas is distributed to fund key public services including health care, education and social services which benefit all British Columbians.

Responsible Development

• As the cleanest burning fossil fuel, natural gas is integral to a lower carbon-energy future for Canada and throughout North America, including broader use in transportation and power generation.

• The provincial government remains committed to natural gas development within the existing framework of provincial and federal environmental regulations. Water, air, GHGs, land, wildlife and human health remain priorities.

• The Province is confident that existing regulations dovetail with best practices, and can ensure responsible and safe industrial development.

Strong Regulatory Oversight

• The Province and industry have put in place a mandatory online registry for chemicals used to free natural gas trapped in shale rock through a process known as hydraulic fracturing. B.C.'s government is optimistic other jurisdictions will follow its lead and implement similar measures.

• To date, there has never been an incident of harm to groundwater from hydraulic fracturing operations within B.C. According to Alberta's oil and gas regulator, there has never been a documented case of fracturing activities contaminating groundwater in that province.

• Provincial regulation and the industry's operational practices will continue to evolve with changing technology, with an eye to being recognized as an international leader in natural gas development.

• The Province has established a new tool to track water inflows in northeast B.C. Government uses the information generated by the tool before issuing water permits.

Contact:

Matt Gordon
Communications Director
Ministry of Community, Sport and Cultural Development
250 953-3677 (office)
250 896-4923 (mobile)