Here we go again. A new government is elected with unrealistic promises to restructure the energy system and new uncertainty is created for all those whose livelihood depended on the old one.
The next jurisdiction in line for an energy shock is British Columbia, where an NDP-Green coalition is poised to form government and planning energy reforms that make those of the Alberta NDP and the Federal Liberals look like a warm up.
The reforms are expected to scuttle all types of energy projects that aren’t in the right shade of green. The Trans Mountain pipeline expansion (oil), the Site C dam (hydro), liquefied natural gas (natural gas), shale plays like the Montney (natural gas) are now at the mercy of the new rulers.
Projects that are too far down the road will do whatever it takes to stay the course, as Kinder Morgan has said about its $7.4 billion Trans Mountain project; those that are mid-way through construction like the $8.8 billion Site C dam are in for a rough ride to justify their existence; those that are still in the planning stages, such as LNG export projects and production of gas and oil from the Montney, will be careful about investing at all.
Indeed, Gary Leach, president of the Calgary-based president of the Explorers and Producers Association of Canada, said “a pause button has been hit” by producers active in the Montney, one of the world’s largest shale plays and B.C.’s most promising wealth generators.
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