PETRONAS Upstream and Down

gas productionOn March 25 2019 the BC NDP government passed a law conceding tax exemptions and commitments to low electricity prices to the industry. The NDP has, despite challenging the previous Liberals government on their concessions to the PETRONAS Lelu Island LNG  initiative, in fact often foreshadowed their present pro-LNG position. According to Carol Linnitt  this NDP concession amounts to an incentive package worth an estimated $5.35 billion (I presume this is calculated over the 40 year accounting period being used in appraising this development) to the LNG Canada consortium of which PETRONAS itself is a 25% stake-holder.

Although PETRONAS’ own $36-billion Pacific NorthWest LNG processing and shipping terminal on Lelu Island was aborted in the face of Lax Kwa’laams opposition and a collapsing market, this Malaysian crown corporation has persisted with its interest in downstream LNG development in British Columbia. Upstream, PETRONAS is presently one of  the largest producers of natural gas in the province and, according to Ben Parfitt, it is the “the single-largest subsurface rights holder of natural gas assets in Northeast B.C.” While PETRONAS is well set for prominence both upstream and downstream in the BC LNG industry it, there is a blockage for them midstream. Development of the connecting Coastal Gaslink pipeline has been retarded by determined resistance from the Wet’suwet’en First Nation, through whose territory in must pass.

Image Modified from: https://www.bcogc.ca/node/15405/download

https://www.timescolonist.com/news/local/lng-deal-not-good-for-b-c-ndp-leader-says-as-legislation-introduced-1.1999376

https://thenarwhal.ca/6-awkward-realities-behind-b-c-s-big-lng-giveaway/

https://thenarwhal.ca/the-resource-b-c-is-piping-to-alberta-that-nobody-is-talking-about/

http://www.coastalgaslink.com/

LNG Pipeline vs Wet’suwet’en

PETRONAS is now a partner in the LNG Canada Kitimat project which involves building an export terminal intended to get natural gas from the North Montney fields to market in Asia. The Coastal Gaslink Pipeline connecting Dawson Creek to Kitimat is an essential part of the overall scheme. Gas from PETRONAS’ own North Montney fields to be delivered via the North Montney Mainline to join the Coastal Gaslink Pipeline at Dawson Creek. While there has been extensive first nations buy-in into the project, including from the elected Wet’suwet’en band council, the hereditary Chiefs of the Wet’suwet’en nation, who claim responsibility for off-reserve affairs and for the stewardship of the larger territory through which the pipeline must pass have voiced serious objections. The Wet’suwet’en have established an Unist’ot’en checkpoint at in 2009 and have steadily developed the Unist’ot’en healing camp over the years. More recently and a second check point was established at neighbouring Gidimt’en to resist the passage of the pipeline.

So what is the significance of the blockade given the injunction and the overwhelming momentum of the provincial/ national /corporate resource agenda? Much of the land of  British Columbia was settled without treaties being reached with the respective First Nations. In a decision of the Supreme Court in Delgamuukw vs. British Columbia (1997), it was held that that Aboriginal title to land can be established if an Indigenous nation could prove exclusive occupation when the Crown asserted sovereignty. Delgamuukw did not however settle the Wet’suwet’en land claim and as such, it will require another trial to resolve the matter. According to law professor Kent McNeil, as reported in Houston Today, it is in this light that the hereditary Chiefs of the Wet’suwet’en are “asserting their title on the ground and they’re saying you can’t do this without consent because it passes through our territory.”

According to the Tyee, on January 7th, in pursuance of a court injunction against the two checkpoints (not the healing camp as it is not in the way of the pipeline), the Royal Canadian Mounted Police (RCMP) tactical unit breeched and dismantled the Gidimt’en checkpoint, arresting 14 protesters.  According to The Interior News, the Wet’suwet’en hereditary chiefs have negotiated with the RCMP to allow Costal Gaslink workers passage through the Unist’ot’en checkpoint for the duration of the injunction which lasts till May 1st 2019. As with PETRONAS’ previously aborted solo project on Lelu Island, their current joint venture in British Columbia’s LNG sector faces the vicissitudes of Canadian Law and politics in the context of our colonial legacy. If it is established that the Wet’suwet’en have Aboriginal title, then, according to Kent McNeil, the Provincial and Federal governments would need their consent before approving resource activities on this land. Even if such a finding of title is not arrived at, as with the previous PETRONAS project, indigenous resistance and the due process may cause enough delay for the joint venture LNG Canada project to run into the ever imminent ‘unfavourable conditions’ in the ever volatile market.

Image: https://www.cbc.ca/news/canada/british-columbia/kitimat-mayor-defends-lng-project-1.4971781

http://www.coastalgaslink.com/

https://www.reuters.com/article/petronas-canada/petronas-says-involved-in-transcanadas-proposal-to-build-north-montney-mainline-extension-idUSL3N1R524E

https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/1569/index.do

https://thetyee.ca/Analysis/2019/01/08/LNG-Pipeline-Unistoten-Blockade/

https://www.interior-news.com/news/hereditary-chiefs-negotiate-injunction-agreement/

https://www.houston-today.com/news/unresolved-land-claim-at-heart-of-wetsuweten-pipeline-opposition/

 

PETRONAS Canada

petronas-canada

In an earlier post I had noted how on July 13 2018, LNG Canada formally welcomed PETRONAS as their fifth Joint Venture participant and how this investment was connected with TransCanada’s Coastal GasLink pipeline that is building to transport the natural gas from Dawson Creek to the LNG Canada terminal in Kitimat.  Much of the gas to be transported to market via the pipeline and terminal will , of course, come from  PETRONAS owned Progress Energy’s own gas fields in the North Montney area. On November 22, 2018 Progress Energy Canada Ltd. changed its name to  PETRONAS Energy Canada Ltd. (PETRONAS Canada). Mark Fitzgerald, President & CEO of PETRONAS Canada said, “The name change is a reflection of our parent company’s commitment to Canada and the strength of our business in the company’s overall portfolio.” Malaysian Crown corporation PETRONAS now not only owns one of the largest natural gas resources in the Montney basin, but is also a key player in getting Canadian LNG to market across the Pacific ocean.

Image: http://mole.my/petronas-jv-participants-reach-final-investment-decision-on-lng-canada/
https://www.energeticcity.ca/2018/07/petronas-now-officially-a-partner-in-lng-canada/
http://www.coastalgaslink.com
https://boereport.com/2018/11/23/progress-energy-changes-name-to-petronas-energy-canada/
https://www.petronascanada.com/

PETRONAS Confirms!

flag

On July 13 2018, LNG Canada formally welcomed PETRONAS as their  fifth Joint Venture participant. According to Energycity.ca  “Petronas is now an official partner in the consortium that is proposing to build a $40 billion liquified natural gas export terminal in Kitimat”. Petronas subsidiary Progress Energy will take a 25 percent stake in the LNG Canada development, which is still subject to regulatory approvals. Shell will lead the consortium with a 40% stake. The other partners are  PetroChina, Mitsubishi Corp. and Kogas Canada. As I noted in a previous post there are implications for national, trans-national relationships and intra-national relations. This investment will be closely aligned with the Coastal GasLink pipeline that TransCanada is building to transport the natural gas from Dawson Creek to Kitimat. Some members of the Wet’suwet’en nation of Canada have built a healing camp in the path of the pipeline. To acknowledge the changing scenarios in Malaysia and in BC I have changed the colours that brand this blog.

https://www.facebook.com/LNGCanada/photos/a.412970468894663.1073741827.412705752254468/911746075683764/?type=3&theater

https://www.energeticcity.ca/2018/07/petronas-now-officially-a-partner-in-lng-canada/

http://www.coastalgaslink.com/

 

 

PETRONAS vs Wet’suwet’en


If PETRONAS goes ahead with its new LNG Terminal investment in BC, the Malaysian crown corporation will hold a 25% stake in LNG Canada’s CAD $ 40 billion project. This investment will be closely aligned with the Coastal GasLink pipeline that TransCanada is building to transport the natural gas from Dawson Creek to Kitimat. A further enmeshment to note that much of the natural gas will come from PETRONAS’ own North Montney fields. All the parties involved in this set of developments, the corporations, the provincial government and the federal government have their eyes on the burgeoning Asian market for the LNG .

There remain, however, some unresolved and under reported conflicts with First Nations in connection with both the terminal and the pipeline. Although there are reportedly signed benefit agreements with 19 of the 20 First Nations involved, there is some entrenched opposition. Some members of the Wet’suwet’en Nation have built the Unist’ot’en healing camp in the path of the pipeline. So once again, the interests of the exemplary Malaysian bumiputra (indigenous) led enterprise is contrary to the those of a group of indigenous peoples from British Columbia.

http://www.coastalgaslink.com/

http://vancouversun.com/opinion/columnists/vaughn-palmer-ndp-celebrates-petronas-return-but-lng-canada-hurdles-remain

PETRONAS BC Reprise!

lng-canada-cattaneoHaving given up its bid to lead BC LNG Terminal investments with a mega plant on Lelu  island, PETRONAS seems unwilling to be left out. On the 31st of May  2018 PETRONAS owned Progress Energy announced  that another PETRONAS  wholly-owned entity, the North Montney LNG Limited Partnership (“NMLLP”), “has entered into a Purchase and Sales Agreement for an equity position in the LNG Canada project in Kitimat, British Columbia, Canada”. Pending regulatory approvals and associated agreements, the composition of ownership in this ‘LNG Canada’ project will be PETRONAS (through NMLLP), (25%); Shell Canada Energy, a subsidiary of Royal Dutch Shell plc (“Shell”), (40%); PetroChina Canada Ltd. (15%); Diamond LNG Canada Ltd., a subsidiary of Mitsubishi Corporation, (15%); and Kogas Canada LNG Ltd. (5%).

Before PETRONAS joined this consortium, Chris Newman of Energeticcity.ca, had reported that industry analysts consider the project  to be a long shot. Yet in an even earlier article in Energeticcity.ca (also by Newman), B.C.’s Premier John Horgan, is reported to have said that the project will proceed “It has all of its permits in place, has social license from First Nations in the region, has the support of the community, and is waiting for economic conditions to turn around”.

 

Image: http://vancouversun.com/opinion/columnists/vaughn-palmer-ndp-celebrates-petronas-return-but-lng-canada-hurdles-remain

http://www.progressenergy.com/2018/05/31/petronas-enters-agreement-to-acquire-25-equity-in-lng-canada-project/

https://www.energeticcity.ca/2017/06/horgan-i-support-lng-provided-the-conditions-are-met/