Breaking out the calculator for the ‘increasingly uncertain’ future of LNG
In this week’s newsletter, we look at the economic viability of the B.C. government’s steadfast support for gas projects. And on Black Friday, we bring you a coveted Narwhal toque for becoming a member by midnight
As construction costs continue to skyrocket, will the B.C. government see a return on its billions of dollars in investments and steadfast support for Coastal GasLink and LNG Canada?
Photo: Matt Simmons / The Narwhal
This article is more than 2 years old
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A year ago, in November of 2021, RCMP conducted military-style raids on Wet’suwet’en territory, arresting matriarchs, land defenders and journalists.
The federal police force continues to spend millions — more than $25 million and counting, to be exact — enforcing Coastal GasLink’s injunction.
The pipeline is more than 75 per cent of the way towards completion — but is it even economically viable? That’s the question northwest B.C. reporter Matt Simmons probes in his latest piece, which examines both Coastal GasLink and the project that it is set to feed, LNG Canada.
B.C. has committed more than $6 billion to the two projects through a mix of subsidies, investments and agreements with First Nations. And it says this financing will pay off to the tune of $23 billion in government coffers over 40 years.
When you break this figure down, it works out to $575 million per year. It can be easy to point to the current global energy crisis, spurred by Russia’s invasion of Ukraine, and say that there is plenty of demand to warrant B.C.’s investment. But what will demand for LNG Canada look like five or 10 years after it gets up and running in 2025, as countries move forward on net-zero emissions pledges? “That is an increasingly uncertain proposition,” one energy economics analyst told Matt.
Meanwhile, on Wet’suwet’en territory, tensions are as high as ever: just this month, Coastal GasLink security workers told Hereditary Chief Na’moks he would be arrested if he crossed a gate to monitor a construction site — something he had done numerous times before without a problem.
Matt was also present (listen to his account on The Big Story podcast) and he too was warned not to cross the line, despite the fact that courts have ruled injunctions do not apply to any journalist who is collecting or gathering information without interfering. That ruling, you’ll recall, didn’t stop the RCMP from arresting photojournalist Amber Bracken last November while she was reporting from Wet’suwet’en territory for The Narwhal.
Our reporting on the RCMP, Coastal GasLink and Wet’suwet’en opposition is far from over. Stay tuned for plenty of more accountability work to come.
Take care and run the numbers twice,
Arik Ligeti
Director of audience
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As construction costs continue to skyrocket, will the B.C. government see a return on its billions of dollars in investments and steadfast support for Coastal GasLink and LNG Canada?
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