LNG a generational opportunity for British Columbia. Madeline Whitaker President BG Canada ITA Youth Conference 26 November 2014

Transcription

1 LNG a generational opportunity for British Columbia Madeline Whitaker President BG Canada ITA Youth Conference 26 November 2014

2 About BG Group BG Group is a global gas company with interests in more than 20 countries on five continents, headquartered in the United Kingdom Distinctive capabilities: World class exploration Leader in liquefied natural gas (LNG) Safe and sustainable operations LNG vessel Methane Kari Elin, Elba Island LNG terminal, Georgia 2

3 Where we operate 3

4 What is LNG? LNG in a specially-designed beaker 4

5 Gas chain Production Liquefaction Shipping Re-gasification Consumers 5

6 Common uses for natural gas 6

7 Why B.C.? Kumealon Inlet Northern BC Coast

8 Strong growth in LNG demand Global LNG supply (mtpa) BG trade outlook Range of external LNG trade forecasts* Demand upside Other New supply US** ~120 mtpa Under construction Existing Supply: existing and under construction Source: BG Group outlook 2013 * Range of trade forecasts: Wood Mackenzie, PFC Energy acquired by IHS, IHS CERA, Poten & Partners, PIRA, FACTS, Global Energy, Gas Strategies **Some US capacity (Sabine Pass T1-4) is under construction 8

9 Huge resource base Large undeveloped shale gas resource base Resource (gas in place) is massive; over 1,200 tcf Extensive gas pipeline network Fair fiscal regime, moderate work commitments, long terms Numerous companies, including Chevron, Shell, and XOM, have entered Source: Map from Advanced Resources International (2012) WCSB = Western Canada Sedimentary Basin 9

10 The B.C. advantage Vast and high quality gas resources Cost of supply is competitive Proximity to Asian markets Ambient temperature improves midstream unit costs Established gas industry: existing infrastructure and skilled workforce Local communities accustomed to industrial development and engaged Engaged and supportive Government Buyers like political stability and want security of supply 10

11 Prince Rupert LNG

12 Project snapshot Proposed LNG plant and associated port facilities Located on Ridley Island Undergoing provincial and federal environmental assessment process Financial Investment Decision not before 2016 Peak construction workforce of approximately 3,800 Ridley Island Rendering of Prince Rupert LNG 12

13 Pipeline Reclaimed pipeline Pipeline right-of-way, under construction, courtesy of Spectra QCLNG, Energy

14 Project assessment Community and First Nations engagement Engineering Environmental assessment and baseline studies

15 Project timeline to date

16 Looking forward 16

17 What can LNG do for B.C.?

18 LNG the difficult questions LNG could devastate the marine environment LNG carriers are explosive and not safe LNG will hugely increase Provincial GHG emissions Foreign workers will take all the jobs The Province is giving away tax breaks so the revenues from LNG will be reduced 18

19 LNG benefits to BC Significant tax revenues for Province and municipalities Jobs direct, indirect, induced Business opportunities Environmental stewardship 19

20 Employment opportunities Direct hire and subcontractor craft Indirect jobs Spinoff jobs 20

21 Scale and duration of opportunities Induced Contractors BG & EPC Induced Contractors BG FID Construction Peak direct workforce 3.5K Operations Direct workforce Direct contracts

22 Construction workforce on site Sitework General Foreman Foreman Laborer Operator Concrete craft Carpenter Concrete finisher Ironworker Ironworker Welder Rigger Piping craft Pipefitter Welder Structural steel craft Electrical craft Electrician Mechanical craft Millwright Boilermaker 22

23 Construction workforce needs 3,500 Indicative Trade Breakdown - LNG Plant 3,000 2,500 2,000 1,500 1, July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July Yr 1 Yr 2 Yr 4 Yr 5 Yr 6 Carpenters Steel Fixer Concrete Finisher Equipment Operator Mobile Crane Operator Rigger Rigger (Dual Ticketed) Scaffolder Scaffolder (Dual Ticketed) I&C Tradesman Electrical Trade Assistant Electrician Electrician (Special) Painter Sheet Metal Worker Cryogenic Insulators Insulators Boilermaker Pipefitter Special Class Welder Mechanical Fitter Labourer 23

24 Operations workforce 25 On-site* Skilled technicians and operators Management and supervision Helpers & Labourers 25 Local office* Management Professional Engineers Office Staff *Numbers based on a 2 train facility 24

25 BG focus on employment & training BG will focus support on: STEM education Assisted pathways for unemployed Local training Entrepreneurship 25

26 Building partnerships Relationships critical to success Trust in the process Opportunities Jobs Training & education Contracts Environmental stewardship Community investment Regional & provincial economic uplift 26

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