Powell River Peak News

February 12, 2008

Proponents of a combined liquefied natural gas (LNG) import terminal and natural gas-fired electrical generation facility for the north end of Texada Island say their project will provide a stepping-stone to the goal of producing power without emitting greenhouse gases (GHG).

Stu Leson, WestPac LNG Corp. president, and Bob Green, vice-president, business development, said the company continues to wait for a provincial climate action team to determine sector targets, part of an initiative to reduce GHG.

Legislation is expected to be introduced this spring to allow for the creation of market mechanisms, making B.C. the first province in Canada to legally require hard caps on GHG emissions.

Those caps will be used as part of a “cap-and-trade system” that’s scheduled to be developed by next August through the Western Climate Initiative.

“Every time we turn around this issue of how they’re going to establish this cap-and-trade system, it becomes more complicated,” said Leson. “We thought it was going to be some combination of western states and perhaps British Columbia. But now Canada it seems is trying to get together all of the provinces and come up with a system. Everybody has a lot of questions and it doesn’t seem like anybody has answers or solutions. We really have to wait until some of the rules are established before we go too far with the final design of the projects.”

Green, a chemical engineer who was a director of the BC Energy Commission, the precursor of the BC Utilities Commission, said the issue also involves a national political dilemma.

While the company waits for the new provincial regulations, Green said he and Leson continue to advance the Texada project within the confines of existing policy.

“We’re keeping aware of the changing policy within the energy milieu.”