You pretty much know the government is in trouble with its liquefied natural gas plan when the prime player in the plan starts negotiating through press releases - and those press releases mince no words.
This week Malaysian energy giant Petronas chose the opening of the fall legislature to send out a press release that said, in part: "tax and high-cost environment will negatively impact the project's economic viability and competitiveness. In fact, in our last portfolio review exercise, the current project economics appeared marginal."
Petronas also said it could delay development for a decade unless it gets a better deal.
Premier Christy Clark, when asked about the release, told media that she viewed the company's statement as a negotiating tactic.
No kidding.
The problem is the province has painted itself in a very tight corner. Clark has been touting the LNG project near Prince Rupert as a one-stop miracle fix for the budget, and jobs for the next decade.
The province has almost no room to move. It can lose face with taxpayers or lose taxpayer money in an effort to keep Petronas in the project.
It's not exactly a win-win scenario.
Now, some folks might find that this is karma for Clark considering that she had painted the B.C. Teachers' Federation in a similar corner and used similar tactics.
The "we-can't-afford-it" tactic worked for Clark, and, we predict, it will also work for Petronas.
Clark can't play hardball without losing Petronas as a player.
And if she loses the LNG plant, it will be embarrassing for her and her government.
If a bunch of NDP socialists lost the LNG plant, the Liberals would be the first to point out that they just don't know how to do business - but when the supposed experts in trade and business fumble the ball, you really have to wonder what they're good at.
