Sep 28, 2016
Why the $36B price tag for Pacific NorthWest LNG isn’t all it’s cracked up to be
While many headlines proclaim the Canadian federal government has approved an ambitious plan to export liquefied natural gas from the British Columbia coast worth a whopping $36 billion, the actual investment from the Pacific NorthWest LNG consortium is a fraction of that amount.
Below, BNN breaks down what is included in that total.
- $5.2 billion for Petronas to acquire Progress Energy (even though that deal closed in 2012)
- $6.7 billion for new pipelines to bring natural gas from the shale fields of northeastern B.C. to the export facility on Lelu Island outside of Prince Rupert, B.C. (even though a company not directly involved in the project – Calgary-based TransCanada – will be building them)
- $12.5 billion for extraction of all the natural gas required to feed the export facility (even though that spending is planned over a 25-year timeline)
- $11.4 billion for the export facility itself
Related: Ottawa gives conditional approval to Pacific NorthWest LNG project
