Ministry of Intergovernmental Relations Secretariat, Ministry of Natural Gas Development, Economy Sector, Cariboo Chilcotin Coast Region, Kootenay Rockies Region, Northern B.C. Region, Provincewide, Thompson / Okanagan Region, Vancouver Coast & Mountains Region, Vancouver Island / Coast Region

Province opens doors to Asian investment in LNG

/2013/10/province-opens-doors-to-asian-investment-in-lng.html
Meeting with the China National Offshore Oil Corporation
Economy Monday, October 7, 2013 10:45 AM


VANCOUVER - Minister of Natural Gas Development Rich Coleman today announced he will depart Friday to promote the development of British Columbia's liquefied natural gas industry in Korea, China and Malaysia.

The business-development trip will start with meetings in South Korea on Sunday, Oct. 13 and move to China and Malaysia before concluding on Monday, Oct. 21. In each country, the minister will meet with companies that are moving forward with LNG proposals in B.C.

The meetings will be an opportunity to highlight the province's competitive advantages to new investors, reinforce its commitment to deliver energy solutions to customers in Asia, and ensure these investors have an opportunity to clearly understand how investing in B.C. will deliver tangible benefits to their customers and the province.

Additionally, the minister will promote B.C. by delivering speeches at both the 22nd World Energy Congress in Daegu, South Korea, and the ninth Canada-China Energy and Environment Forum in Beijing, China. While in Korea, the minister will participate in a panel discussion at the Canada-Korea Dialogue on Energy in Seoul.

The trip will be the minister's first opportunity to tour one of the world's largest LNG production facilities - the PETRONAS LNG Complex in Bintulu, Malaysia.

Coleman's trip to Asia, coupled with Premier Christy Clark's Jobs and Trade Mission in November, will further LNG development opportunities, promote B.C. as a stable, attractive destination for trade and investment and create well-paying jobs that support B.C. families.

Quote:

Rich Coleman, Minister of Natural Gas Development -

"Successful LNG development requires a strong relationship with investors in Asia. They need to understand British Columbia is open for business and competitive with other jurisdictions. I look forward to discussing how British Columbia can best work with them to build and operate some of the world's cleanest facilities along our north coast. And I look forward to working with them in the longer term to stimulate our economy in a meaningful way and make new, well-paying jobs available to British Columbians."

Quick Facts:

  • There are currently more than 10 proposed LNG projects in B.C., three of which already have approved export licences from the National Energy Board.
  • Assuming two larger and three smaller-sized LNG plants, along with supporting pipelines, the ministry could see more than 39,000 annual jobs created over a nine-year construction period and 75,000 jobs once these plants are fully operational.
  • Since last year, companies have invested more than $6 billion in B.C. to acquire upstream natural-gas assets and secure the development of pipelines and LNG plants in B.C.
  • If five large LNG plants are built, the gross domestic product benefit to B.C. is expected to add up to $1 trillion by 2046.

Learn More:

British Columbia's Natural Gas Strategy: http://www.gov.bc.ca/ener/popt/down/natural_gas_strategy.pdf

British Columbia's LNG Strategy: http://www.empr.gov.bc.ca/SiteCollectionDocuments/LNGreport_web_130627.pdf

The LNG One Year Update: http://www.gov.bc.ca/com/attachments/LNGreport_update2013_web130207.pdf

NOTE TO EDITORS:

Advisories with details about future media availabilities in each country will be provided to newsrooms during the minister's trip.

A backgrounder on South Korea, China and Malaysia follows.

Contact:

Sandra Steilo
Media Relations
Ministry of Natural Gas Development
250 952-0617

BACKGROUNDER

LNG Business Development Trip - South Korea, China, Malaysia 2013

South Korea

  • South Korea is British Columbia's fourth-largest trading partner and third-largest export market in Asia. B.C. exports were valued at $1.9 billion in 2012.
  • South Korea is the world's second-largest importer of LNG. Its public natural gas company, KOGAS, is a co-venture partner in the LNG Canada proposal in Kitimat. The company is involved in multiple natural-gas development projects in northeast British Columbia.
  • South Korea's SK E&S partnered with Canada's Imperial Oil as one of the four proponents who submitted a proposal to build a LNG facility on the Crown land near Prince Rupert.
  • South Korea is home to some of the largest and most advanced refineries in the world and in its efforts to improve the nation's energy security it is aggressively looking overseas for exploration and production.

China

  • British Columbia ranks first among Canadian provinces as a source of Canadian exports to China. In 2012, British Columbia's exports of goods accounted for 28 per cent of Canadian exports to China.
  • China's growing economy makes it a primary demand market for natural-gas-energy supply. In 2009, China as well as India represented 13 per cent of LNG trade globally.
  • Currently, China relies heavily on coal and oil to meet the country's growing energy requirements. As the world's cleanest-burning fossil fuel, British Columbia's natural gas can displace China's use of coal and oil.
  • PetroChina Company Ltd., which is headquartered in Beijing, is China's biggest oil and gas company. In May, 2012, it partnered with Shell Canada Ltd., Korea Gas Corp, and Mitsubishi Corp. to develop the LNG Canada project in Kitimat.
  • Sinopec Ltd. - an oil and gas company based in Beijing - is ranked as the world's fifth-biggest company by revenue share by Fortune Global 500 in 2011. In 2012, its net income was worth $63 billion.

Malaysia

  • Malaysia is one of the top five LNG producers in the world.
  • PETRONAS Energy Inc. is a national petroleum resource company located in Malaysia. It is one of the world's leading natural-gas export companies and has an established, extensive network of LNG customers. Fortune Global 500 ranks PETRONAS Energy as one of the most profitable companies in the world.
  • Pacific Northwest LNG - a proposal in Price Rupert by PETRONAS, Progress Energy and JAPEX - could create up to 3,500 construction jobs and 300 long-term operational positions.

Contact:

Sandra Steilo
Media Relations
Ministry of Natural Gas Development
250 952-0617

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