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Need to tap LNG is urgent, says B.C. energy minister Rich Coleman

The Raging Grannies may not have managed to get an audience with Rich Coleman on Wednesday, but the minister responsible for natural gas development in B.C. did put on his own show for a small group of Victoria business people.
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Raging Granny Daphne Taylor sings to a protest crowd outside a downtown Victoria hotel where Energy Minister Rich Coleman was delivering a speech on Wednesday.

The Raging Grannies may not have managed to get an audience with Rich Coleman on Wednesday, but the minister responsible for natural gas development in B.C. did put on his own show for a small group of Victoria business people.

After the protest songs outside the Harbour Towers Hotel over B.C.’s liquefied natural gas strategy, fracking and pipelines, Coleman arrived to deliver a version of what is becoming a well-worn LNG 101 presentation to members of the Greater Victoria Chamber of Commerce.

There were big ideas, big numbers and big expectations. And Coleman made it clear his government is not about to let the opportunity pass.

“I have sat down with the heads of these [LNG] companies to make sure we are getting to the sweet spot, where we get what we deserve for the people of B.C.,” said Coleman.

It’s a globally competitive business and “we need to win at this,” Coleman added. “Because here’s the situation: It’s not some of something, it’s zero or nothing.”

Coleman said if B.C. can’t attract the LNG industry, the province will be left with a vast resource in the ground with nowhere to go. He also noted B.C. would lose out on an opportunity to pay for increased services and pay off its debt.

“Everyone in the world wants the same opportunity, so we have to do better than they do and quicker than they do and get our numbers right. And I think we’re there,” he said.

Coleman noted there are already five companies exploring the LNG opportunity in B.C. who have set up Vancouver offices. He estimates more than $2 billion has been spent here as those companies approach making a final decision on building plants and pipelines in the province.

Though the north has been the focus of LNG, Coleman noted some companies have been looking at old mill sites at Squamish, Campbell River and Port Alberni for possible plants.

There are nine LNG export projects in various stages at this point. Coleman said the initial investments so far are just a start.

He said the five LNG plants and the required pipelines being considered for B.C.’s north would mean more than $100 billion in capital investment and 100,000 jobs during construction. “Our estimate today is with three to five plants, it adds $1 trillion to GDP over 30 years,” Coleman said. “With royalties alone, we can achieve a $100-billion prosperity fund in B.C. and pay off our debt in 15 years, and we’re not kidding about that.”

Chamber CEO Bruce Carter said while LNG appears to be an inevitability, there hasn’t been much of a push from members to take a stand one way or another on the issue.

“That may be because it’s not as much of a hot-button issue from an environmental perspective,” he said, noting members had been more agitated about the Northern Gateway and Kinder Morgan pipeline issues.

Frank Bourree, principal of Chemistry Consulting and president of the chamber, suggested most people have yet to realize the size of the LNG opportunity.

Bourree, whose work is closely tied to the tourism industry, said that industry has come to terms with the prospect of LNG becoming a large player in the B.C. economy.

“I think the tourism industry recognizes the economy needs LNG and will work with the ministry to address issues like the environment and viewscapes,” he said. “I don’t think we can miss this opportunity to capture that revenue for the province.”

Bourree’s company also deals with labour in the province. He was glad to hear Coleman address what appears to be a looming shortfall of tradespeople.

“And it’s not just for LNG, it’s all industry sectors. We don’t need as many teachers and lawyers as we’ve been putting out. We need more tradespeople. We need educational institutions to be more market-relevant,” Bourree said.

Coleman told the Chamber group the government believes progress is being made after challenging colleges and universities to train students for the economy to come.

aduffy@timescolonist.com