03 June 2010

Very lucky indeed

The Old Man Hisself, in the House of Assembly this week, speaking of the $14.7 billion Lower Churchill project, arguably one of the most expensive hydro megaprojects on the drawing boards of North America today:

…from an economic perspective we are in a situation where we have enough information to really sit down and talk with any industrial developer at any point in time.

Yes, NALCOR is ready to talk about building this project any time at all, just as they have before now.

And just for comparison sake, from last fall, energy analyst Tom Adams has a different take:

Just as natural gas from the Mackenzie delta is now recognized as uneconomic in light of foreseeable market conditions, the factors that have driven down power prices in Northeastern North America make the economics of Lower Churchill development unviable for the foreseeable future. Newfoundlanders are lucky that Nalcor, their Crown energy company, is not out in the market the trying to sell high cost power right now. [Emphasis added.]

Yes, the people of this province are lucky indeed to have people looking after the Lower Churchill who’d be smart enough not to try and flog a project estimated at upwards of $15 billion in a depressed energy market.