Fraser Institute study says B.C. LNG delays costing billions in lost revenue
CBC News | Posted: September 22, 2015 8:59 PM | Last Updated: September 22, 2015
Critics say study from right-wing think tank underestimates the cost of transporting LNG to Asia
The province is losing tens of billions of dollars a year because of delays to the LNG industry, according to a report from a right-wing think tank.
The Fraser Institute says regulatory hold-ups are costing B.C. more than $20 billion a year and causing the province to lose its competitive edge.
"We're not talking about a trivial amount of money — we're talking about a significant percentage of the current GDP of the province," said Ken Green, senior director of natural resource studies at the Fraser Institute.
Green said the numbers are based on estimates of how large B.C.'s resources are, as well as IMF demand in Asia.
Not everyone agrees with the calculations.
David Hughes, an earth scientist and an expert in energy resources, said the report grossly underestimates the cost of transporting LNG to Asia.
"When I look at the Fraser Institute calculations that the cost of moving LNG to Asia is revenue lost, I can't see their logic there," said Hughes.
He also disagrees with the report's claims that regulatory delays have been a roadblock to development. He said many companies are purposely dragging their heels while keeping a keen eye on the market.