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/

BRFN vs PETRONAS & BC

brfncrop

Northeastern British Columbia is rich in a diversity natural resources, which includes an abundance of Natural Gas, the extraction of which has become a 40 year project for PETRONAS Canada. Much of these resources lie on Indigenous lands but, it seems, as Amnesty International has claimed in a report titled Out of Sight, Out of Mind, that the Indigenous people are “excluded from a meaningful role in decision-making and bear a greater burden, including loss of culture and traditional livelihoods.” While they may acquiesce and sign benefit agreements,  it appears that in reality the indigenous people are dealing with the kind of ‘offers they cant refuse.’ As Blueberry River First Nation (BRFN) trapper, rancher, hunting guide and logger Brian Clarke notes pointedly, but without criticizing the oil and gas companies whom it seems first encroached on his trap lines and then provided him work ploughing snow or moving earth, “if you can’t beat them, you join them … And you can’t beat them.”

The amnesty report shows how the consequences go beyond environmental and land tenure considerations, deep into the very social fabric of these native communities. In summary, the report concludes, “The model of resource development, particularly the reliance on large numbers of transient workers, widens inequalities between Indigenous and nonIndigenous people and between women and men, negatively impacting Indigenous families’ access to food, housing and social services and increases risks of violence.” The report specifically criticizes government for failing to allocate sufficient resources to services necessary to meet these needs.

Natural Gas extraction (fracking) is only one of many resource activities, and PETRONAS only one of many corporate entities at work causing ‘disturbance’ in the Peace River area of Northeastern BC. These disturbances are evidenced in great detail in the David Suzuki Foundation 2016 report titled Atlas of Cumulative Landscape Disturbance in the Traditional Territory of Blueberry River First Nations. While there are many parties involved, it is PETRONAS that has recently and notably been the beneficiary of a British Columbia Environmental Assessment Office (EAO) decision that exemplifies the powerful corporate/ administrative forces that the small native communities have to contend with. PETRONAS was given unprecedented retrospective approval for two massive dams that were built on Blueberry River First Nation (BRFN) land without obtaining legally required permissions and exemptions. BRFN’s legal counsel Maegan Giltrow has said that this decision has been made in the face of Blueberry’s repeatedly expressed concerns  about the diminishing water quality and quantity. 

According to BRFN lands manager Norma Pyle, the BRFN has been repeatedly sounding alarm bells to the Crown about the diminished water quantity in their territory, “We have been watching lake levels drop, muskeg disappear, mineral licks dry up and streams reduce to small versions of their former selves.” The Blueberry River First Nations submitted detailed commentary and evidence to the EAO against the granting of the post factum exemptions to PETRONAS, but to no avail. It is in this context that the BRFN recently withdrew of a wider treaty infringement claim against the Province of British Columbia alleging that the cumulative effects of industrial development on its territory had breached the government’s obligations under Treaty 8.

Sandy Carpenter, Sam Adkins and Josh Smith note that after consultation and negotiation between the BC Oil and Gas Commission (OGC), BRFN and the Ministry of Energy, Mines and Petroleum Resources, the parties signed a Regional Strategic Environmental Assessment Interim Measures Agreement, which prohibits or restricts new surface disturbance in defined critical areas of BRFN territory, while managing development activities in other specified areas. This interim agreement came into force on July 16, 2018. Without knowing the mitigation afforded the BRFN by the terms of the agreement, I venture to suggest that with  two previous court decisions against them, one can understand that they might have felt that you just cant beat them.

Image edited from: https://davidsuzuki.org/science-learning-centre-article/atlas-cumulative-landscape-disturbance-traditional-territory-blueberry-river-first-nations-2016/

https://www.alaskahighwaynews.ca/business/petronas-plans-40-years-of-steady-measured-development-in-b-c-montney-1.23527974

https://www.petronascanada.com/

https://www.amnesty.ca/sites/amnesty/files/Out%20of%20Sight%20Out%20of%20Mind%20ES%20FINAL%20EN%20CDA.pdf

https://thenarwhal.ca/blueberry-river-death-by-thousand-cuts/

https://www.policynote.ca/drain-it-petronas-subsidiary-ordered-to-take-action-at-two-controversial-fracking-dams/

https://projects.eao.gov.bc.ca/api/document/59c4361cf97b160018030811/fetch

http://www.mondaq.com/canada/x/724588/Oil+Gas+Electricity/BC+Restricts+Oil+And+Gas+Developments+In+Blueberry+River+First+Nation+Territory

 

 

 

 

 

 

 

 

 

the Neoliberal Economy Stupid

4 Tunai itu RajaIn the run-up to Malaysia’s 14th General Elections, 2018, Machiavellian maestro Mahathir Mohamad deployed the slogan Cash is King! to devastating effect against then incumbent Prime Minister Najib Razak, imbricating him in a narrative of shameless corruption. While the matter of Najib’s corruption is yet to be heard in law, it has been decided in public opinion, as Mahathir has now, at 92 years of age, returned as the oldest serving Prime Minister in the world. Mahathir’s meme imprinted in popular Malaysian consciousness the sense (regardless of veracity) that Najib’s corruption was qualitatively worse that anything that had transpired before, much of which had happened under Mahathir’s own watch.

The question of corruption is also currently under the spotlight in Canada by way the ongoing SNC Lavalin affair, in which it is alleged that the Prime Minister’s Office’s (PMO) put pressure upon the Attorney General of Canada to act in the interest of the said corporation in a criminal matter. (Please see my previous post for a Key to the SNC Lavalin Affair) The question at hand is whether this pressure was exerted on the  Attorney General, in an improper manner, vis-a-vis the ‘Rule of Law.’ The stakes, for the time being, appear to be ‘merely’ political.  Whether or not this pressure broke federal obstruction-of-justice laws is not as yet in question. It appears, however, that the Royal Canadian Mounted Police has been urged to begin criminal investigations by five former Federal and Provincial Attorney’s General. Equally it appears that, it could be argued that in terms of the rules and values of our system there is no illegality, not even a scandal, just another Wilson-Raybould storm in another Trudeau teacup. This seems to be what seasoned commentator Bsuggests in her article, “Look Away. There’s no scandal here with SNC-Lavalin”  … just business as usual in accord with the norms of Canadian governance.

The point is that corruption is not confined to its legal definition. It arises within and operates through legitimate transactions of all kinds. In writing about bribery, law and morality, John Thomas Noonan has said that “the common good of any society consists not only in its material possessions but in its shared ideals. When these ideals are betrayed, … the common good, … suffers injury.” I suggest, with reference to Marx and Hugo, that it is the unbridled annexation of common material possessions as private property that constitutes the betrayal of the shared ideals and injures the common good. This is the corruption that is enshrined in the laws that uphold neoliberalism. Indeed, regardless of illegality, the effect of the unmitigated monetization of common possessions is degrading to our humanity.

The legality or propriety of a particular exertion of pressure or proffering of inducement, critical though it is in terms of the workings of a given society, is trivial in the face of the bending of governance, the making of laws included, to the will of a powerful section of actors. What good is the adherence to the Rule of Law, if the laws, whose rule is upheld, engender a stilted and degenerate social order …  Here in Canada and throughout the world, this seems to be the default operating mode of the neoliberal political economy – wherein, by fair means or foul, the monetization of common possessions reigns over the common good … but there are exceptions  …  There are indeed, some striking instances of resistance to the all enticing ‘Cash.’ … In 2015 Malaysian Oil and Gas giant PETRONAS offered the tiny Lax Kw’alaams community $1.15 billion in exchange for their support for the building of an LNG terminal on Lelu Island in the Skeena watershed, but the community categorically declined the offer. They refused to convert the common possessions into ‘Cash,’ showing British Columbians and Malaysians alike, that there are, indeed, alternative values and alternative ways.

The image above, titled  7 Cash is King!, is a visualization for a photograph that will be a part of the Berhijrah (Migration) Series of my Koboi Project. This image is being developed as a remix of Mahathir’s political slogan, Zig Zag’s powerful political cartoon and my own apolitical ‘black hat’ Cowboy.

https://www.malaymail.com/news/malaysia/2015/06/13/dr-m-najib-told-me-cash-is-king/914991

https://www.straitstimes.com/asia/se-asia/mahathir-sworn-in-as-7th-malaysian-pm

https://www.huffingtonpost.ca/2019/03/01/5-ex-attorneys-general-call-for-rcmp-probe-into-snc-lavalin-affair_a_23681656/

https://www.youtube.com/watch?v=IchVHyfBO9Y

https://www.theglobeandmail.com/opinion/article-look-away-theres-no-scandal-here/

http://blogs.worldbank.org/futuredevelopment/moral-dimensions-corruption

https://pressprogress.ca/near-monopoly-canadas-economy-is-dominated-by-a-small-handful-of-corporations-experts-warn/

https://www.theguardian.com/business/2016/sep/12/global-justice-now-study-multinational-businesses-walmart-apple-shell

https://www.theguardian.com/environment/true-north/2016/mar/20/by-rejecting-1-billion-for-a-pipeline-a-first-nation-has-put-justin-trudeaus-climate-plan-on-trial

https://warriorpublications.wordpress.com/2012/12/14/indian-act-chiefs-and-idle-no-more-snakes-in-the-grassroots/

 

 

 

 

 

 

Fracking in BC

viewRoads and fracking drill pads slice up the scenery in northeastern BC (2013)

In June 2018, Centre forCPA-BC Resource Policy Analyst Ben Parfitt made a presentation to British Columbia’s Scientific Hydraulic Fracturing Review Panel in the context of rising provincial LNG industry and attendant concerns about general health and safety, and specifically the well being of Indigenous Peoples and communities.

Parfitt’s presentation included the following findings:

  • at least 92 dams were built in northeast BC without the companies that built them first obtaining the required licences and authorizations.
  • a large number of drilled and fracked gas wells in one remote operating area in northeast BC leaked methane gas, potentially contaminating groundwater.
  • increased water use at more fracking sites means more earthquakes.
  • contrary to the Province’s adoption and implementation of the United Nations Declaration on the Rights of Indigenous Peoples, the fracking operations in BC have taken place without the “free, prior and informed consent” of First Nations.

Imafe: https://thetyee.ca/News/2013/06/07/Northern-BC-Transition-Fuel/

https://www.policyalternatives.ca/publications/reports/ccpa-bc-presentation-scientific-hydraulic-fracturing-review-panel

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/