The billionaires at the pinnacle of American power see a new way to make money from their friend Donald Trump’s war in the Middle East – and British Columbia is key to their plans.
This week Reuters broke the story that Wall Street private equity firms KKR, Blackstone and Apollo Global Management are all vying to buy Shell’s 40 per cent stake in LNG Canada.
KKR, and its intelligence chief David Petraeus, already own a controlling stake in the Coastal GasLink pipeline. Petraeus has been talking up LNG exports since he left the CIA in 2013.
Apollo and Blackstone are investors in the nearby Ksi Lisims LNG proposal. Both are led by CEOs with close ties to the White House and its American Energy Dominance doctrine.
Why are they moving to buy up more gas export infrastructure on the B.C. coast? In short, they see a chance to squeeze poor countries for cash, while prolonging reliance on fossil fuels.
“More and more Asian customers, given recent events, are interested in diversifying their supplies and willing to pay a premium for that,” Shell CEO Wael Sawan said this week.
In other words, LNG terminal owners in North America believe they can sell fuel at “premium” prices, with a promise the U.S. military will protect their supply chains.
Until the war, Qatar was producing 20 per cent of the world’s LNG. Then Iranian drones hit its production facilities, and the Revolutionary Guard choked off the Strait of Hormuz.
This is the boogeyman U.S. companies are using to bully other countries into signing their long-term fuel contracts. But those high prices are prompting many to switch to renewables instead.
The fact it’s Wall Street private equity firms leading this strategy tells you how risky it really is. As we speak, many countries are moving to reduce their reliance on the American gas cartel.
Shell is talking up the potential of LNG Canada like a used car salesman who knows the engine could blow at any minute. Canadian taxpayers, and pension funds, would be wise to steer clear.
