On July 1, 2019, Global Energy Monitor published a misleading report titled, The New Gas Boom: Tracking Global LNG Infrastructure, for which the Canadian Association of Petroleum Producers (CAPP) has issued the following statement:
The conclusions of the Global Energy Monitor’s report are factually incorrect. Sharing these untrue statements is unacceptable. This is another deliberate attempt by a foreign-funded activist organization to discredit the Canadian oil and natural gas industry. This group, along with the wider activist community is positioning itself against global development, and the lifting of a billion people out of poverty through access to clean energy.
According to the International Energy Agency, natural gas demand is expected to increase by 43 per cent and supply 25 per cent of the total energy consumed in 2040. It will be the second-most important source of energy. The share of demand for renewables is projected to be seven per cent of total energy demand. Rising incomes and global population growth of 1.7 billion people, mostly in urban areas in developing economies, will account for this global energy demand.
Canada has the strongest environmental performance among producing nations, and a track record of continuous improvement and technology development. Natural gas from Canadian liquefied natural gas (LNG) has more than 50 per cent lower life-cycle emissions than coal according to Pace Global 2015.
Analysis of data from the Government of British Columbia, the B.C. LNG Alliance, the United States’ Energy Information Agency, U.S. Department of Energy, and the International Gas Union, indicate that Canadian LNG has less than half the carbon emission intensity compared to LNG from the U.S. Gulf Coast.
Using the Pace Global 2015, of life-cycle GHG intensities of both coal and LNG, CAPP estimates that by 2040 about 1,500 megatonnes of carbon dioxide equivalent (MtCO2e) emissions could be eliminated every year if new power plants in China, India and Southeast Asia are fuelled by natural gas instead of coal.
For every LNG facility built in Canada, global emissions are reduced by 100 MtCO2e per year. Five Canadian LNG facilities would meet or exceed our commitment under the Paris Agreement, based on incremental new power generation demand displacing coal. Canadian GHG emissions intensity from LNG facilities is expected to be even lower as a result of strong regulations, and an opportunity to electrify the upstream. Eliminating upstream combustion emissions via electrification is made possible by connecting to a lower-emissions electricity system, which could reduce the upstream carbon intensity by approximately half.
Global economies are growing and world will need more natural gas. Canada is best positioned to ensure this demand is met with responsibly produced Canadian energy.
- Tim McMillan, President and CEO, CAPP