LNG sector could support 75,000 jobs

B.C. projection assumes five plants are built

VANCOUVER— In its latest bid to demonstrate the potential scale of its nascent liquefied natural gas industry, the B.C. government has unveiled a scenario that shows the sector could support a permanent workforce of 75,000, which British Columbia’s northern regions couldn’t hope to fill on their own.

It is the first full-scale estimate of potential employment in the sector, on the assumption that five LNG export plants would be built on B.C.’s coast by 2021. The numbers were compiled as part of the work of the B.C. Natural Gas Workforce Strategy Committee, whose report was released Tuesday.

On top of that, the construction phase under this scenario would require a workforce of 60,000 during its peak in 2016-17.

“Frankly, the numbers are not surprising to us; they are very large, though,” said Shirley Bond, B.C.’s Minister of Jobs, Tourism and Skills Training.

The report indicates the next immediate steps should be to address barriers to employment for possible workers and to develop information, standards and tools as a foundation for implementing training programs.

The report was released on the same day Finance Minister Mike de Jong tabled provincial financial statements that showed B.C. ran a $1.15 billion deficit in 2012, $178-million above the forecast.

Geoff Stevens, independent chairman of the committee, said the job-creation numbers are consistent with the experience that Australia has had with the construction of its burgeoning LNG industry.

Stevens said he had a chance to visit Curtis Island off the coast of Queensland where three LNG plants are under construction, and the lesson there is that “the further you can get ahead of the curve, the better off you are,” in terms of developing a workforce.

Stevens added the particular demand will be for skilled trades workers, which will require B.C. to not only train new workers in the region, but draw them from other parts of the province and across Canada.

“I think realistically, there will be some requirement to look offshore, as Australia is currently doing,” Stevens said.

However, given that of the four major proponents doing preliminary work on proposals for LNG plants in B.C. none has made a final decision to build, the political opposition in Victoria views Tuesday’s report as speculative.

“We’re not certain we’re going to get a single plant, let alone three, four or five,” Robin Austin, the NDP critic on the natural-gas development file and MLA for Skeena, said. “So I think 60,000 jobs seems to be like a high projection.”

Austin added B.C. is having difficulties now trying to fill skills gaps with projects already underway, such as the rebuilding of Rio Tinto Alcan’s aluminum smelter in Kitimat and construction of the BC Hydro Northwest Transmission Line.

“We’re bringing in temporary foreign workers for the Alcan build,” Austin said, “And I can see the same thing happening with LNG, where government talks about strategy, but doesn’t actually engage on the ground in terms of getting training going.”

Stevens noted there are at least 10 proponents looking at possible projects. Apache Corp. and Chevron Corp.’ s Kitimat LNG project was the first proposal, but the others in preliminary design phase include Shell Canada’s LNG Canada project, the Pacific Northwest LNG project of Petronas subsidiary Progress Energy and BG Group’s Prince Rupert LNG proposal.

Since then, Stevens said ExxonMobil has expressed interest in a potential development.

“This assumes that five plants would proceed,” Stevens said.

The report notes that in 2012, B.C.’s natural gas sector employed 13,235 people — mostly in services to the sector — but the numbers are expected to swell to 61,700 to drill enough gas to fill the LNG-production capacity of those five plants, as well as meet B.C.’s domestic needs for natural gas.