Liquefied Natural Gas or LNG

When natural gas is used within Canada or sent to customers in the U.S., it’s shipped as a gas through pipelines and delivered to end users such as homes and businesses.

When natural gas is exported to overseas markets, the natural gas is cooled to become a liquid called liquefied natural gas (LNG) that can be transported in large ships called LNG carriers.

Liquefied natural gas (LNG) is natural gas that has been super cooled to -162° C to become a liquid. Being in a liquid state allows for the gas to be transported to global markets via LNG carrier.

Simply put: it is a massive opportunity both environmentally and economically.

Canada is the world’s 5th largest producer of natural gas. However, currently we do not have any completed export facilities to liquify and transport our natural gas to overseas markets. This means that our natural gas is exclusively used to supply domestic and American markets. 

With abundant natural gas resources, we have the potential to become a major player in the global LNG market, supplying cleaner energy to meet rising demand while helping to lower emissions by reducing the reliance on more carbon-intensive fuels, such as coal.

The development of LNG projects will grow Canada’s role as a supplier of secure and reliable energy for our global allies while creating jobs for Canadians and providing opportunities for prosperity and partnerships with Indigenous communities.

The simple answer is NO.

With Canada’s proximity to Asian markets, and our massive natural gas reserves, we have a serious advantage over our competitors.

Currently under construction, the $40 billion LNG Canada megaproject will export 14-million tonnes (about 682 bcf) of LNG a year. The facility is expected to be operational by 2025. With additional projects approved and under consideration, Canada’s West Coast is poised to become a global energy export hub for LNG.

LNG isn’t just an economic opportunity for Canada. It can also play a major role in the global fight against climate change. This is because natural gas is cleaner burning – producing less emissions than coal.

Canada’s natural gas producers are growing production and lowering emissions. From 2012 to 2021, natural gas production in Canada grew by 35 percent while direct absolute carbon dioxide equivalent emissions from the production of natural gas (scope 1) fell by 22 percent. Methane emissions from production during that same time went down by 38 percent.

Europe has rapidly mobilized its resources to move itself off Russian gas and prevent the worst impacts of the global energy crisis by acquiring LNG from the United States, Qatar, and other exporters. However, this left some Asian and South American countries under-supplied. Canada can help supply LNG to nations around the world in need of critical energy supplies.

LNG Canada is constructing an LNG processing plant and export facility at Kitimat, B.C. within the traditional territory of the Haisla Nation. LNG Canada has been working closely with First Nations communities in the vicinity for several years to enhance project benefits and opportunities and minimize negative impacts where possible. To date, the joint venture has spent $3.5 billion on contracts and procurement in B.C., of which $2.6 billion was awarded to First Nations and local area businesses.

TC Energy’s 670-kilometre Coastal GasLink pipeline will carry natural gas from northeastern B.C. to supply LNG Canada’s liquefaction facility on the West Coast. Coastal GasLink worked closely with Indigenous groups to create long-term benefits that are tailored to meet the needs of the individual communities and has agreements with all 20 First Nations along the route.

Cedar LNG will be the first majority Indigenous-owned LNG export facility in Canada.

The B.C. natural gas sector spent about $540 million with some 100 B.C.-based Indigenous-affiliated businesses and organizations between 2018-2021. To learn more about the natural gas supply chain in British Columbia visit here.