The authors of the report argue the lack of policy and regulatory co-ordination in Canada, coupled with an increasingly crowded and competitive market is threatening the possibly of our country being shut out of the LNG market.
“Producers around the world, including in the newly gas-rich U.S., are racing to lock up market share in the Asia-Pacific region, in many cases much more aggressively than Canada,” the report reads. “While this market is robust and growing, the nature of the contracts for delivery will favour actors that are earliest in the queue. And, as supply grows, so too does the likelihood of falling gas prices in the Asia-Pacific region, making later projects less lucrative.”
The authors note the disagreements between governments over standards, processes and compensation in the potential LNG industry are stalling the approval of projects, like pipeline rights of way and agreements with First Nations.
They’ve also reserved strong criticism for the provincial government’s proposed LNG special tax, arguing this tax could negatively affect both the cost of financing and the ability to access markets in a timely fashion.
The authors of this report are Michal Moore, Dave Hackett, Leigh Noda, Jennifer Winter, Roman Karski and Mark Pilcher.