A respected U.S. energy group has criticized a rosy Conference Board of Canada report championing more liquefied natural gas development in British Columbia as “a lobbying effort for government subsidies, support and flexibility.”
The scathing critique by the Institute for Energy Economics and Financial Analysis characterized the Conference Board report as “misleading,” short on facts and unrealistic.
“The Conference Board, a non-profit economic research organization based in Ottawa, believes Asian, or more specifically, Chinese demand growth can sustain a further leap in British Columbian LNG capacity growth, despite corporate investors already folding their hands,” said the institute in its highly-critical paper.
The Ohio-based institute is funded by a variety of philanthropic organizations and examines issues related to energy markets, trends and policies. Its mission is “to accelerate the transition to a diverse, sustainable and profitable energy economy.”
The Conference Board’s July report, titled “Rising Tide,” estimated that if the government boosted LNG development to export 56 million tonnes of liquefied natural gas a year the industry would create 100,000 jobs based on an imaginary growth scenario.
“B.C. is becoming the focal point for a new Canadian industry — liquefied natural gas,” claimed the report, which failed to mention that 13 LNG projects have already been cancelled or suspended in B.C. and other parts of Canada due to bad economics, global oversupply and high extraction costs based on hydraulic fracturing.
At the moment, Shell’s LNG Canada is the only active project in B.C.
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