The B.C. government made the right decision putting their eggs in the LNG basket, because the move will yield long-term profits, says one energy analyst.
The B.C. Liberals are putting $100 million of taxpayers' money into a LNG prosperity fund and say more money will be added when the LNG industry takes off in B.C.
But the industry itself is warning that with oil prices falling the window of opportunity is rapidly closing. Some economists, however, maintain the future is bright for the natural gas industry because of climate change agreements.
"It is a very long term industry and there is significant demand ... which is motivated by the Paris agreement and the commitments that Asian countries made to clean their energy systems, said Mary Hemmingsen, Global Head of LNG at KPMG in Canada
She admits it is too late for B.C. to cash in on current demand, but there is still a chance for Canada to be the world's North American supplier of LNG.
"We have an approval process that provides 40-year supply and it sets us apart in terms of a long-term secure supply for buyers of LNG globally."
Hemmingsen says the B.C. government will have to wait and see whether their prosperity fund pays off.
"As [Finance] Minister de Jong said, hopefully it's not if but when, and it'll be keyed-off of the decisions that some of the leading projects make this year."
To listen to the full interview, click the link labelled: LNG investment will yield long-term profits says energy analyst.