It recalls the Liberal government throne speech last February, which forecast a $100 billion windfall for B.C. as a result of a new LNG industry and talked about erasing the province’s $56 billion debt by 2028.
However, the Sun says the 15 page Foundation report also notes the tempering of expectations generally turns out to be wise and would likely be useful in this case.
The document also points out that “B.C. is coming late to the party” and competitors are well ahead in terms of their capacity to deliver product. It adds the province hasn’t even determined what its royalty regime is going to be, and costs will have to be carefully managed to remain competitive with the likes of Qatar and Australia.
The Foundation agrees the main markets will be in the far east, citing China, Japan and Korea, but it adds competition to serve them will be intense, and it will include the Americans.
The report concludes that the opportunity to build a successful new industry in B.C. is solid, but that it’s not guaranteed, and that people who have become real estate speculators in communities like Fort St. John, should proceed with caution.
To read the full Vancouver Sun article, click here.