Liquified Natural Gas in BC

The scene is the Dragon's Den and a new prospect has just walked in.

Hello Dragon's, I am Christy Clark, the leader of the British Columbia Liberal government and I am looking for a $50 billion dollar investment for a 15% share in the BC Liquefied Natural Gas industry (LNG)

The questions start:

Dragons: That is a $600 Billion valuation of your product.  Do you have a plant or any sales?
CC: Why yes we do. We have a plant at Kitamat that is ready to start production in 2015. We have some purchase agreements and should be ready for 5 mmtpa (million metric tonnes per annum)

Dragons: LNG worldwide sells about 300 mmtpa (or $200 Billion) and is anticipated to grow by another 200 mmtpa (or $135 Billion) by 2020. What percentage of that new growth do you expect to capture?
CC: We are ready to capture 15% or $20 Billion a year, with 30 year agreements to make up the $600 Billion valuation.

Dragons: Currently you appear to be on track to only capture 1/6th of that with your Kitamat plant. And $20 Billion/year is more than your entire oil and gas industry currently produces. How do you intend to increase production to the point where you will be able to take 15% of the growth in the market from the existing players who are also vying for the same industry increases?
CC: That is where your $50 Billion comes in. We need to double the size of the Kitamat plant and built at least 2 or 3 other plants.  Of course we only need $7 or $8 Billion up front and then the rest as the gas purchase agreements are signed.

Dragons: So you need $7-8 Billion to do the ground work in order to make the sales so that you can expand this industry to a size larger than you entire oil and gas industry to date and do it all quickly enough to capture 1/6th of the new growth in an industry where the other producers have been working for decades and have close ties with all the clients you are hoping to sign up?
CC: Yes, I am confident because I believe in jobs and this will make thousands of jobs.  It is a staggering number but we can do it if my government is given another term.

Dragons: This is a great opportunity that needs to be aggressively pursued but your valuation is at least 5 times over inflated, so I am out.

The numbers that Christy Clark is glibly throwing around ($600 Billion over 30 years) represent 10% of our province's GDP. Those numbers apear to be for re-election consumption only. This is a growing industry to be sure but we are late adopters. If we can capture 5% of the growth in this industry we would be doing exceedingly well and would likely be at the highest capacity that the Kitamat plant can be expanded to handle. (10 mmtpa). That would be only $6-7 Billion/year or $200 Billion/30 years. Even this would be an enormous goal.

I am not saying that we shouldn't strive for this and more, I am just saying that the numbers don't appear realistic and I would like to see the plan to reach them. Otherwise, this is just massive exaggeration to sell a government that is in desperate need of some good news. I know I wouldn't want my performance evaluation to be tied to hitting those targets.

short list of sources reviewed to find the math behind the promises:
http://www.vancouversun.com/news/Clark+embarks+second+trade+mission/6595365/story.html
http://www.kitimatlngfacility.com/
http://en.wikipedia.org/wiki/Liquefied_natural_gas
http://www.bcstats.gov.bc.ca/Files/5fba2481-01e9-4579-83d3-6b6c6c1c15c8/BCGDPbyIndustryCurrentDollars.xlsx
http://armiesofliberation.com/archives/2010/06/19/yemen-natural-gas-sold-at-one-third-of-market-price-193ton-vs-689ton/