NATURAL gas costs in northwestern B.C. will remain high now that a planned LNG project has been cancelled.

Gas consumers to take hit in Northwestern B.C.

Douglas Channel LNG’s payments to PNG would have reduced the prices

  • Feb. 29, 2016 6:00 p.m.

WHILE the cancellation of the Douglas Channel LNG project will have an economic impact on its partners and on the overall prospect of a B.C. energy industry, northwest natural gas consumers will take the biggest hit, says Skeena NDP MLA Robin Austin.

That is because there is now no relief in sight to the high prices being charged to deliver the commodity to businesses and homes.

Those delivery prices would have come down once Douglas Channel LNG began operations as it would have used all of the large surplus capacity of the Pacific Northern Gas (PNG) natural gas pipeline which serves the region.

Douglas Channel LNG’s payments to PNG would have then reduced the prices that the natural gas utility now charges its current business and residential customers to maintain its pipeline.

“We now pay very, very, very high prices for natural gas relative to anywhere else,” said Austin.

“That really began when Methanex pulled out [of Kitimat],” Austin said of the company which produced methanol at a plant in Kitimat until 2006 using natural gas delivered by PNG.

“When I tell people down here in Victoria what we pay for gas, for the delivery, they just can’t believe it.”

The MLA added that he can see no solution to high natural gas prices simply because PNG must pass along its maintenance and other costs to its business and residential customers.

PNG’s natural gas northwestern delivery rates in this region are more than three times higher than anywhere else.

The most current residential delivery rate here is $12.91 a gigajoule while it is $3.921 a gigajoule in Fort St. John, which is also served by PNG.

On the lower mainland, Fortis, that region’s natural gas utility, charges residents $4.939 a gigajoule for delivery, storage and transport.

Natural gas utilities in B.C. are regulated by the B.C. Utilities Commission which reviews prices and costs quarterly as well as approves rate applications made annually.

Utilities cannot add on anything to the cost of natural gas itself.

 

Just Posted

College buys a yurt to boost student success

Round tent-like structure part of college instructional shift

Soup kitchen sees “groundswell of community support”

Donations toward looming tax bill push non-profit back in the black

Terrace husband and wife honoured for saving each other’s lives

BC Ambulance presented each a Vital Link Award for separate incidents of CPR

Council supports lobby for fair share of cannabis tax revenue

The City of Terrace is throwing its support behind a West Kelowna… Continue reading

Airport registers modest passenger increase

Manager anticipates further growth in 2018 as expansion project nears completion

Airport registers modest passenger increase

Manager anticipates further growth in 2018 as expansion project nears completion

Liberals quietly tap experts to write new paternity leave rules

Ideas include creating an entirely new leave benefit similar to one that exists in Quebec

Insurers say Canadian weather getting hotter, wetter and weirder

Average number of days with heavy rain or snow across Canada has been outside norm since spring 2013

Final phase of MDMA-assisted psychotherapy trials to kick off in B.C.

Doctors hope to get psychedelic-assisted psychotherapy legalized in Canada and the U.S. by 2021

VIDEO: Thousands join women’s march events across B.C.

Today marks one year since the first Women’s March on Washington

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

B.C. woman who forged husband’s will gets house arrest

Princeton Judge says Odelle Simmons did not benefit from her crime

Women’s movement has come a long way since march on Washington: Activists

Vancouver one of several cities hosting event on anniversary of historic Women’s March on Washington

Most Read