Chinese consortium Petronas wants to use principally Chinese workers with a few technical engineers from the USA and Europe to build the LNG terminals in Norther BC and are hinting that unless concessions are made the project may be put on indefinate hold.
http://www.theglobeandmail.com/report-o ... e20815508/
The Chinese essentially say there are not enough Canadians willing to travel for work as evidenced by the problems Alberta has.
So we have a hard decision to make here. The wealth these resource projects and facilities in remote area generate helps to subsidise the social programs that allow us to remain in areas where there is little to no work available.
Do we:
1. Just stop developing and start paying higher prices for energy, goods and services and tolerate the uptick in unemployment in regions that supply engineering, geological and special equipment?
2. Adjust the social safety net to force people to choose between the streets and working where the jobs are?
3. Allow foreign companies to use only their own workers under their own laws similar to Canadian construction/resource companies operating in the third world?
Petronas is Malaysian.
In BC, you can only get welfare 2 out of every 5 years as it is, @ 600/mo for work capable adults. I doubt anybody collecting this munificence tho, has the skills required for the LNG work.
Large projects require large numbers of workers for a short time. We should first make sure that every Canadian who wants and is qualified for one of these jobs has been offered it, and the same assistance as TFW's, ie relocation assistance. We should also make sure we help Canadians get qualiftied - none of these projects are anywhere near ready to go, or even certain they will go. Then we can start talking about also bringing in TFW's if still needed.
Ultimately this will be the same bullshit as the Chinese mine, where the claim was that Canada had no qualified people, so they needed Chinese miners. The miners union showed how many Canadians were ready and willing to work on that job, but had never been offered the job. Don't fall for the bullshit that these companies sling.
Anyone really surprised that a company from the third world wants to use third world workers at subpar wages (with nil safety regs no doubt)?
Our resources can't be offshored like our manufacturing sector but some seem intent on profiting from them with as little involvement from us as possible.
Ahhh, Coolee labour ... and old Canadian tradition.
This may explain why- The profit level is at 14-15 per and gas is selling at lower prices.
http://www.edmontonjournal.com/business ... =2bb1-a1cf
In addition, LNG prices in Asia have dropped, hitting multi-year lows of around $10 US per million British thermal units (MMBtu) in July, as new supplies come onstream and China’s economy slows. Prices have rebounded since, but the days of $20 LNG are probably gone for good.
A major Russian natural gas export pipeline, which will supply gas to China at roughly $10 per MMBtu, is driving down Asian LNG contract prices. Even Qatar, a major LNG supplier with some of the lowest break even costs in the world, is being forced to discount prices to secure customers.
Since B.C.’s big LNG projects are believed to need an average LNG price of perhaps $14 or $15 per MMBtu to earn a profit, that explains why Petronas may be willing to walk away rather than sink billions into a project that could become a financial black hole.
What’s more, LNG projects are a dime a dozen these days. They’re springing up all over the planet, from the U.S. Gulf Coast to Australia to Papua New Guinea and even East Africa. Many are already in production, and others that are in the approval process or under construction are far ahead of the projects in B.C.
Leave it in the ground. it will be worth many times more in a generation or two. Leave some natural wealth for our children.