Quote:
Originally Posted by Street Pharmacist
This is exactly the kind of conversation I was hoping for when I made this thread. I get a lot of info from a certain slant and I'm sure those in the industry have other info I'm not seeing.
Having said that, I was more talking about an eastern route, though I suppose it was a bit of a blanket statement. The route west would be much cheaper and the payback would be much quicker.
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Honestly everything I have seen you are right (on an eastern route). I don't think it's actually economic, and I have yet to see anybody argue otherwise. I think there's a case for the west route but it depends on price mainly, and long-term commitments.
The other issue is that if you look at other projects, like say, Australia LNG projects for example, have a gander at actuals vs. initial budgets which are almost always hugely overrun. So running the econs on these projects on the west route- you could be right that substantial cost overruns and delays in launch date really does challenge these projects significantly.
As well, to get these west projects rolling you need... unfortunately... pipes to get the gas from the Montney to the coast. These are happening (Coastal Gaslink) but we actually need more / larger. Lastly- there are actually not many great locations on the west coast for sites. Prince Rupert is the most obvious and they've love to get that rolling, but getting the gas across that inlet to the raw land where the site makes sense on plots C and D or whatever- -it's all hugely expensive to access those sites. The current existing pipe is an older than god, kind of crummy rotting thing that services residential customers in Prince Rupert and area. The pipe traverses some mountainous areas with shaley broken / landslidey rock and makes it incredibly challenging and expensive to build- let along the #### show that would be consultation.
So, there just aren't that many great options on the west coast anyway.