The energy giants behind the CAD 40 billion LNG Canada project on the West Coast are warning that Ottawa’s steel safeguards will have a direct impact on the viability of their venture one that may cause delays, investor uncertainty and a scaling back of production targets. In a submission to the Canadian International Trade Tribunal, LNG Canada Development Inc, the joint venture behind the largest private sector investment project in Canadian history, argues that extending the current, temporary safeguards on steel would also have serious negative repercussions on Canada’s attempts to develop a reputation as a leader in global energy markets. According to documents seen by the Financial Post, “The various procurement decisions and actual Project construction are expected to take place over the next five years, almost all of which would be while the provisional or, if imposed, definitive safeguard measures are in place.”
it said that “Subsequent phases of the Project (including the construction of two additional trains, doubling Plant capacity) require continued investor certainty, which is at risk due to safeguard measures that have a significant impact in isolation, and compounded by other recent trade restrictive measures taken by Canada.”
In October, Finance Minister Bill Morneau introduced immediate provisional safeguards on seven different steel products in an attempt to block a potential flood of imports from being diverted into Canada because of US steel and aluminum tariffs.
The combination of tariffs and quotas are to remain in place for 200 days pending an independent investigation by the CITT the quasi-judicial body charged with making a recommendation on whether the evidence warrants the imposition of “final safeguards” lasting three years.
Source : CALGARY HERALD
Yaang Pipe Industry Co., Limited (www.yaang.com)