THURSDAY, june 7, 2018 Vol. 75 No. 23
Serving Fort St. John, B.C. and Surrounding Communities
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coffin commotion
Petronas puts 25% stake into LNG Canada
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Mr. Bumble (Donavin Dettling) along with Mrs. Sowerberry (Liv Adamson) and Charlotte (Carli Tetrault) lift Oliver Twist (Sharlese Schultz) out of a coffin during a scene from Dr. Kearney Middle School’s musical production of Oliver! at the North Peace Cultural Centre on June 1, 2018. Turn to B11 to see more photos from the production.
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Stalled economy a rough ride in 2017 Northeast B.C. shed 600 jobs and 2,300 workers as a result of a stalled economy in 2017, according to a new report released Monday. The Chartered Professional Accountants of British Columbia released its annual Regional Check-Up economic report, noting the region’s employment dropped for the second year in a row. The region lost 600 jobs in the goods and service sector last year, bringing total employment to 38,500 people. The goods sector lost 200 jobs due to declines in forestry, fishing, mining, and oil and gas. The service sector lost 400 jobs, despite “modest gains” in health care, social service, and trade industries, the or-
ganization noted in a news release. Meanwhile, another 2,300 workers left the region to find employment elsewhere, cutting both the region’s labour force participation rate and its unemployment rate. “Economic activity in our region is stalled due to the unknown fate of the 20 proposed major natural gas projects here and across Northern B.C. Our economy is tied hand-in-hand with the fortunes of the resource sector, particularly with the energy industry,” Ben Sander, a partner at Sander Rose Bone Grindle LLP in Dawson Creek, said in a statement. “While investment has stalled over the past two
years, natural gas exploration activity did pick up last year, with spending on petroleum and natural gas drilling and exploration in the region jumping from $15.1 million 2016 to $173.3 million last year.” Other highlights from the report: • There were five business insolvencies and 85 business incorporations year-over-year. “Northeast B.C. had its ups and downs in terms of business incorporations, due to economic fluctuations, but business insolvencies have remained relatively low, indicating some stability,” the report noted. See ECONOMY on A12
Tommy Lakes wildfire 70% contained Steady rain has helped BC Wildfire Services wrangle the Tommy Lakes wildfire under control this week. The fire was 70 per cent contained as of June 5, and listed at 22,000 hectares in size. “Resources are currently being reassessed following Monday’s rain event. Crews continue demobilizing equipment on the wildfire,” the agency noted in an update Tuesday morning. There were 108 firefighters, two helicopters, and three
pieces of heavy equipment assigned to the fire. Cool temperatures last weekend help to stymie the fire from growing before the rain. On June 1, the region district rescinded an evacuation alert from the area. On June 2, the Wildfire Service lifted a ban on Category 2 fires for the region. The prohibition on the use of the following fire-related equipment is rescinded: burn barrels and burn cages, air curtain burners,-
binary exploding targets, sky lanterns, fireworks, including firecrackers, and stubble or grass fires over an area smaller than 2,000 square metres. Although fire danger ratings have dropped in the region, the public is strongly encouraged to exercise caution with any outdoor burning or campfire use. To report a wildfire, unattended campfire or open burning violation, call 1-800663-5555 toll-free or *5555 on a cellphone.
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It’s official — Petronas, which pulled the plug on its $36 billion Pacific NorthWest LNG project in 2017 — is back in the LNG game in British Columbia. Petronas and LNG Canada have confirmed earlier reports that Petronas would take an equity stake in the $40 billion LNG Canada project. E a r l i e r this month, B.C. Energy, Mines and Petroleum Resources Minister Michelle Mungall let it slip in an interview with Business in Va n c o u v e r that Petro- Tan Sri Wan Zulkiflee Wan Ariffin nas would join the LNG consortium. Petronas plans to take a 25% stake in the LNG Canada project in Kitimat, to become the secondlargest stakeholder. Shell, the lead partner, is reducing its stake from 50% to 40%. PetroChina Canada Ltd. will hold 15%, Diamond LNG Canada Ltd., a subsidiary of Mitsubishi will hold 15%, and Kogas Canada LNG Ltd. will have 5%. “Petronas is in Canada for the long-term and we are exploring a number of business opportunities that will allow us to increase our production and accelerate the monetization of our world-class resources in the North Montney,” Petronas CEO Tan Sri Wan Zulkiflee Wan Ariffin said in a news release.” LNG is just one of those opportunities.” The buy-in is still subject to various regulatory approvals, and will take a few months to be finalized. “The transaction announced today does not amount to an FID (final investment decision) which remains pending,” Shell Canada said in a news release. “The timing and outcome of an FID will be decided by joint venture participants based on global energy markets, and the overall competitiveness and affordability of the project.” One outstanding hurdle for the project to clear are 45% duties Canada slapped on fabricated steel products from China, South Korea and Spain. LNG Canada and Woodfibre LNG have both stated that Canada does not have the expertise to build the large LNG modules needed to chill natural gas gas to below 160 below Celsius, and have appealed to the federal government for exemptions. See PETRONAS on A3
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