Premier's LNG Dreams Given Reality Check By Japanese Expert
Visiting from Tokyo, Dr. Ken Koyama says BC faces ‘severe’ competition in selling gas to Asia.
From TheTyee.ca |Published 30 Jun 2014
By Geoff Dembicki
Since her 2013 re-election, Premier Christy Clark has positioned liquefied natural gas as the solution to B.C.‘s financial woes. She even found a way to link the province’s nascent LNG industry to income support for the disabled, claiming at a recent press conference that B.C. will “be able to afford to improve and invest in social programs” only by exporting gas to Asia. This spring she argued LNG will “transform our economy, pay off debt and create a better future for our children.”
Those are bold claims, resting on equally bold assumptions. Crucial among them is that economies like Japan’s will pay an Asian premium for B.C. LNG much higher than what it costs here to produce. To test the assumption, I sat down with Dr. Ken Koyama at the Asia Pacific Foundation of Canada’s Vancouver office. Koyama was visiting from Tokyo, where he’s chief economist at the Institute of Energy Economics Japan, and an advisor to the country’s Ministry of Economy, Trade and Industry. read more>