The Government of Canada’s approval of the Pacific Northwest liquefied natural gas (PNW LNG) project will open Canadian energy to new global markets, striking a balance between growing the national prosperity generated by Canada’s energy sector while delivering on government’s commitment to lower global greenhouse gas (GHG) emissions.
Canada has strengthened its potential as a global energy supplier by approving the PNW LNG terminal to move Western Canadian natural gas to tidewater and provide access to global markets. Through LNG, Canada can grow its Asia-Pacific trade, create more jobs and prosperity at home and grow its international reputation as a place to invest. Global demand for natural gas is expected to increase by 46 per cent through 2040 and 20 per cent of that increase is expected to be met by LNG.
Reaching new markets allows Canada to be a positive contributor to the global energy mix for the future. LNG will facilitate the expansion of renewable energy by complementing its intermittent energy output and possibly lowering global GHG emissions by providing jurisdictions with a lower-carbon alternative for their energy mix.
Ocean access from the West Coast of British Columbia to Asian markets is Canada’s opportunity to supply growing markets, make a positive contribution to the global energy mix and lead to action against climate change.
With the additional conditions applied, projects of this magnitude need to be carefully reviewed by the proponent to determine their commercial viability in the context of a competitive global environment.
Canadian Association of Petroleum Producers quotes: Tim McMillan, president and CEO of CAPP
- “The government’s commitment to LNG shows that they are interested in balancing both Canada’s sustained environmental leadership and its prosperity.”
- “Canada is seizing its opportunity to be an energy supplier for the future.”
- “By approving LNG terminals, Canada has a remarkable opportunity to create jobs, contribute to communities and generate economic growth.”
- “LNG could support the expansion of renewable energy such as solar and wind by complementing their intermittent output.”
- “Without access to global LNG markets, Western Canadian natural gas production is expected to decline over the next 10 years.”
- Right now LNG is operating in a highly competitive environment so there are many contributing factors that go towards deciding whether or not a project proceeds or not.”
- Natural gas has been safely produced for more than 50 years in B.C., and represents a significant opportunity for government revenues, jobs and economic prosperity.
- Three west coast LNG terminals with a combined capacity of 5.4 billion cubic feet per day and associated natural gas production would mean the creation of more than 156,000 jobs (direct, indirect, induced) in B.C. by 2035, up from 53,000 today (CERI).
- Global natural gas consumption is expected to increase nearly 50 per cent by 2040, making it the fastest growing hydrocarbon (IEA 2015).
- Industry is committed to compete on a GHG-intensity basis with other natural gas suppliers to the Asian market.
- B.C. and Alberta have strict regulations on flaring, venting and fugitive emissions from upstream facilities, which serve as models for other jurisdictions.
- Canada has more than 300 years of natural gas resources trapped in a competitive North American gas market. Development of LNG would unlock these resources and stimulate the production of natural gas to displace high GHG emission fuels.
The federal government news release can be found here.
The B.C. government news release can be found here.