LNG\u2019s unlikely saviour? B.C.\u2019s NDP premier turns cheerleader in Asia trip<\/a><\/li>\n<\/ul>\nWoodfibre had initially announced its 2.1-million tonne export facility in Squamish would go ahead, but paused parts of the project when the tariffs were first imposed in 2017.<\/p>\n
Siddon said the company had recently resolved other recent obstacles to construction \u2013 including obtaining certainty on what it would pay for electricity and the tax it would pay in British Columbia.<\/p>\n
\u201cI think, within the LNG industry, we know that the window is opening and we want to be ready to go get it. You don\u2019t want to be delayed so that you miss it again,\u201d Siddon said.<\/p>\n
Singapore-based Woodfibre is not the only company making visits to Ottawa to seek relief from the tariffs.<\/p>\n
At the beginning of April, LNG Canada, Suncor Energy Inc. and Fluor Canada appealed the Canadian International Trade Tribunal ruling from 2017 that initially imposed the duties on the steel components, which have also been used for oilsands projects.<\/p>\n
Suncor spokesperson Sneh Seetal said in an email the company isn\u2019t sure when the Federal Court of Appeal will render its judgment on the appeal. She added that Suncor does not expect the tariffs will impact its recently completed $17-billion Fort Hills oilsands project \u201cas steel and equipment were already imported.\u201d<\/p>\n
LNG Canada did not respond to a request for comment. Fluor declined to comment on the basis for its appeal.<\/p>\n
Meanwhile, analysts say Finance Minister Bill Morneau has power to relax the tariffs, which could remove a major hurdle construction starting on Woodfibre LNG.<\/p>\n
Analysts also believe the tariffs are the last remaining obstacle for Shell Canada Ltd.\u2019s LNG Canada project, which was initially estimated to cost $36 billion and would mark the largest single investment in Canadian history.<\/p>\n
\u201cWe are aware of Canadian LNG proponents’ concerns about the imposition of anti-dumping and countervailing duties on fabricated imported steel components,\u201d Finance Canada spokesperson Jack Aubry said when asked whether a remission order was being considered.<\/p>\n
\u201cFinance Canada continues to carefully monitor this issue, and we are conducting normal due diligence and consultation with implicated stakeholders as we do when considering all remission requests,\u201d Aubry said.<\/p>\n
In March, a group of seven mayors from cities in northern British Columbia also flew to Ottawa to meet with finance officials and raise concerns that the import tariffs could hurt the chances of LNG projects being built in the province.<\/p>\n
“Clearly, something needed to be done to ensure the opportunity for LNG and the $22 billion in government revenue, the tens of billions of capital investment, and the 10,000 skilled jobs that come from construction wouldn\u2019t be lost,” mayors of the cities including Kitimat, St. John’s, Dawson Creek and Terrace wrote in a letter to Ottawa on April 6.<\/p>\n
Financial analysts also believe tariff relief could be on the way.<\/p>\n
\u201cThere has been a precedent of LNG companies getting a favourable ruling,\u201d Wood Mackenzie principal Americas gas analyst Dulles Wang said, citing a previous decision on a now cancelled LNG project by AltaGas Ltd.<\/p>\n
\u201cThat is the remaining obstacle for both projects,\u201d Wang said of Woodfibre LNG and LNG Canada, adding that both of those companies are facing a \u201ctime crunch\u201d and feel a sense of urgency in getting a response from the federal government.<\/p>\n
The urgency comes from recent forecasts that global demand for LNG will soon outstrip supply, that presents an opportunity for more export capacity to be built in places like Canada, the U.S., Qatar and Australia.<\/p>\n
FortisBC vice-president, market development Doug Stout said his company had already sent 20 small containers of LNG to China in one shipment this month, after sending Canada\u2019s first shipment of the super-cooled gas to China in late November.<\/p>\n
The company is currently wrapping up construction on 250,000-tonne expansion project at its Tilbury LNG facility in Delta, B.C. that was announced in 2014 and cost $400 million.<\/p>\n
Stout said the increasing number of shipments to China has caused FortisBC to consider another 250,000-tonne expansion that could be online by 2021 and a potential 1 million to 3 million tonne expansion by 2025.<\/p>\n
\u2022 Email: gmorgan@nationalpost.com<\/a> | Twitter: