Pacific NorthWest LNG approval will benefit Alberta: Notley
Premier Rachel Notley expects Alberta will benefit from the Pacific NorthWest LNG plant approved by the federal government, should it go ahead.
Environment Minister Catherine McKenna announced approval Tuesday for the project that will move natural gas from northern B.C. via a TransCanada pipeline to a $11.4 billion terminal near Prince Rupert for export to Asian markets.
McKenna was flanked by Minister of Natural Resources, Jim Carr, and Minister of Natural Resources and Minister of Fisheries, Oceans and the Canadian Coast Guard, Dominic LeBlanc.
The proposed $36 billion project has faced strong opposition from some environmentalists and some First Nations groups who are concerned about greenhouse gas emissions and the potential impact on local fisheries and habitat.
Notley said even though she expects much of the new plant's capacity will be dedicated to B.C. resources, it will help Alberta contractors and energy producers.
"It's important to establish a balance between sound economic development and good environmental policies," she said.
Speaking on the Calgary Eyeopener on Wednesday, Calgary Centre MP Kent Hehr called the announcement "an exciting day for western Canada" as it could produce 4,500 jobs and add $2.4 billion to the country's GDP.
"It's one of those projects that shows our balancing what's good for the economy and good for the environment in a difficult way and I think it shows our commitment to understanding western Canada, the needs of developing a strong oil and gas industry in a responsible way," he said.
"Of course this is going to open up two markets … this will create opportunities both in the North American continent as well as in the far east. We have to understand the world economy is becoming increasingly focused on Asian development and we have to get resources to market in a sustainable fashion in the 21st Century."
Canadian Association of Petroleum Producers president and CEO Tim McMillan said benefits will be seen for more than a decade if Petronas, the Malaysian oil and gas company behind the project, decides to go ahead with construction.
"Canada is seizing its opportunity to be an energy supplier for the future," he said.
"By approving LNG terminals, Canada has a remarkable opportunity to create jobs, contribute to communities and generate economic growth. LNG could support the expansion of renewable energy such as solar and wind by complementing their intermittent output."
Dirk Lever, head of equity research at AltaCorp Capital, said the approval doesn't mean Petronas will automatically move forward.
"They've spent a ton of money to get to the point where we are today, but they have to factor in considerations such as, of the 190 conditions that were put in front of them, what are the cost of those, do they change the economics? ... I'm starting to read articles and speak to people and the views are shifting somewhat, that if we look to 2023 the marketplace may look better."
Lever added approval of the Pacific NorthWest LNG project also doesn't necessarily mean good news for proponents of the proposed Trans Mountain pipeline.
"I think these projects are looked at individually and separately," he said.
"I don't think you can link one to the other, I'd love to be able to, but I don't think we can."
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With files from the Calgary Eyeopener
