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54 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 5 "but not both". Construction on the dam is slated to begin this summer. Both PNW LNG's Michael Culbert and Minister Rich Coleman remain optimis- tic an accommodation can be achieved. "Pacific NorthWest LNG has engaged in consultation with all area First Nations – reflected by agreements signed to date," Culbert said. "Our goal is to gain support from all area First Nations – and we will continue to work with that in mind. "We will continue to constructively engage with area First Nations in parallel with the environmental work currently being undertaken with the Government of Canada," he added. "We are very attentive to the concerns raised by the Lax Kw'alaams commu- nity and we will continue working with this nation and others on environmental concerns," said Coleman. "We have high expectations for industry projects in this province. They have to be responsibly developed and safely operated, and First Nations have to be engaged and part of project development." As if these hurdles weren't enough, other challenges could derail the project. Last October, former Petronas CEO, Shamsul Azhar Abbas, said it could be deferred for 10-15 years if it isn't shipping product by 2019. And several LNG projects planned to start this decade could mean buyers will be oversupplied by 2020, with many feeling the glut will last until 2025. Everyone is watching plummeting prices, as last year's crash pushed spot prices down to $7.60 per million BTU in Japan and $5 per million in China, below the $13-plus experts say is needed to make the Canadian Pacific coast proposals profitable. Also worrisome is the turmoil surround- ing Malaysian Prime Minister, Najib Abdul Razak, PNW LNG's biggest supporter, who could be ousted amid allegations of mismanagement of billions in government funds. With the company's net profits dropping 39% in the 2015 first quarter, if that happens would the company and the government continue to support this LNG project? And, of course, if the ruling Conservatives lose next October's Canadian federal election, all bets are off. But the BC government believes it has set the stage for success. "We have put policies in place to give LNG proponents long-term certainty and build on our com- petitive advantages," said Coleman, "and we're seeing the results now." n www.resourceworld.com