A Positive Final Investment Decision by LNG Canada Represents a Significant Opportunity for Canada: CAPP

October 2, 2018 – Calgary, Alberta

The Canadian Association of Petroleum Producers (CAPP) welcomes the positive final investment decision made by LNG Canada to proceed with the construction of a liquefied natural gas (LNG) facility on the west coast of British Columbia. This project marks the single largest capital investment in Canadian history, and is an important next step in the building of a brand new industry in Canada.

By 2040, global natural gas demand is expected to increase 45 per cent to reach 199 trillion cubic feet (Bcf/d), and Canada’s enormous natural gas resources can help meet that growing demand in an environmentally and socially responsible manner.

Exports of Canadian natural gas would primarily be used for electricity generation in growing Asian economies such as China and India and would directly compete with coal. When used for electricity, natural gas emits approximately 40 per cent fewer greenhouse gases than coal.

CAPP estimates a West Coast LNG industry, exporting about 30 million tonnes per annum (Mt/a), would grow Canada’s economy by an average of $7.4 billion per year over the next 30 years.

Canada’s oil and natural gas industry can and should become the world’s energy supplier of choice. Without access to global LNG markets, western Canadian natural gas production is projected to decline over the next 10 years, and stay at lower levels of production than today.

The Canadian Association of Petroleum Producers quotes: Tim McMillan, president and CEO

  • “Today’s announcement by LNG Canada represents an important next step in the development of a new industry in Canada, one that would provide access to growing Asian markets for Canada’s vast natural gas resources.”
  • “There is a clear and growing demand for natural gas, globally – especially in developing countries such as India and China. Canada has an opportunity to supply that market with responsibly produced resources and realize the important economic benefits that come with it.”
  • “It is essential for Canada to access new markets. While Canada has abundant natural gas resources, the United States, our largest competitor, is currently the only international customer for western Canadian natural gas.”

Supporting Messages

  • Canada is the world’s fifth largest producer of natural gas, and has been safely developing natural gas resources for more than 60 years.
  • LNG Canada’s terminal at Kitimat, B.C. will create a significantly shorter path between North America and Asia.
    • Asian markets are an eight- to 11-day sail from proposed West Coast terminals, which is two days closer than most of our international competitors.
  • The cumulative capacity of the currently proposed West Coast LNG projects could double Canada’s natural gas production to about 30 Bcf/d.
  • A West Coast LNG industry, exporting about 30 Mt/a, would grow Canada’s economy by an average of $7.4 billion per year over the next 30 years.
  • Natural gas power generation emits nearly 40 per cent less carbon dioxide compared to coal.

The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and oil throughout Canada. CAPP’s member companies produce about 80 per cent of Canada’s natural gas and oil. CAPP’s associate members provide a wide range of services that support the upstream oil and natural gas industry. Together CAPP’s members and associate members are an important part of a national industry with revenues from oil and natural gas production of about $110 billion a year. CAPP’s mission, on behalf of the Canadian upstream oil and natural gas industry, is to advocate for and enable economic competitiveness and safe, environmentally and socially responsible performance.

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