Premier Christy Clark has asked Community, Sport and Cultural Development Minister Bill Bennett to lead discussions with communities of the Northwest region of the province to look at the opportunities, benefits and challenges that are anticipated as a result of Liquefied Natural Gas (LNG) development.

"LNG will bring unprecedented economic benefit to British Columbia, including incredible growth to the Northwest," said Clark. "We are committed to working with the local municipalities to ensure they are prepared for this growth and have a say in how the benefits are realized."

The government of British Columbia has put the right regulatory framework in place to support the expected development. Government has also worked closely with the local municipalities to establish how communities can best benefit from this expansion. Now, discussions led by Bennett will build on these preparations as LNG opportunities become a reality and communities are positioned to capitalize on the benefits of economic growth.

"Over the next several weeks, I intend to meet with community leaders in the region to hear first-hand about their plans for growth and ideas on how to maximize benefits in the region. Coming from a smaller community myself, I know how important it is to feel connected with other levels of government," said Bennett.

"LNG growth will bring unprecedented benefits to the region, as well as to the entire province, including the creation of thousands of high-quality jobs and increased investment in the programs and services we value," added Clark. "I know the best way to work with people is to make sure they have a chance to have input so we can forge a path together that will maximize the benefits for the communities and people of the Northwest. Minister Bennett is just the right person to ensure this happens."

Media Contacts:

Mike Morton
Press Secretary
Office of the Premier
250 588-8380

Matt Gordon
Communications Director
Ministry of Community, Sport and Cultural Development
250 953-3677 (office) or 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 the 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.

Engagement:

Over the coming weeks and months Bennett will lead:

• Discussions with Northwest elected officials, community and business leaders about the opportunities, benefits and challenges that are anticipated as a result of LNG development.

• Direct provincial officials to support ministerial engagement with supplemental meetings and discussions at the staff level.

The facts:

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 are 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 towards three LNG plants becoming operation by 2020, with one up and running as early as 2015.

• Presently, two projects - Douglas Channel and Kitimat LNG - 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 either.

• 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.