Global energy demand is expected to continue growing, yet the focus on a sustainable planet has never been greater, and the need for access to affordable and reliable energy that helps elevate people from poverty never more urgent.
Around the world, more than a billion people live in energy scarcity or poverty and three billion still use fuels such as wood or biomass for cooking and heat, impacting their health and quality of life. Access to clean, affordable, reliable energy is crucial for lifting people from poverty and enabling progress.
Providing clean, reliable and affordable energy to growing populations while continuing to fight global emissions is a problem governments across the planet continue to face.
Canadian Liquefied Natural Gas (LNG) is the answer.
Developing Canada’s Liquefied Natural Gas (LNG) resource will create good, sustainable jobs for Canadians, lift millions out of poverty by providing clean, affordable energy, and reduce global emissions by replacing coal burning electricity generation around the world.
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What is Liquefied Natural Gas (LNG)?
Natural gas is the single largest form of energy used in Canadian homes, with over 6 million homeowners using natural gas to heat their homes, hot water and cook meals. Natural gas has been a part of Canada’s energy mix since it was first discovered in New Brunswick in 1859. Today about 30 percent of Canada’s entire energy needs are met by natural gas.
Natural gas, when produced and used in Canada, is shipped as a gas through pipelines to a local distribution company and then delivered to customers.
When natural gas is shipped to distant foreign markets, the natural gas is cooled to -161°C to become a liquid.
Growing global demand has created a unique but time-limited opportunity for Canada to develop its domestic liquefied natural gas (LNG) industry. Canada is the world’s fifth-largest producer of natural gas, with an estimated 1,225 trillion cubic feet of remaining resources (Source: NEB 2017). At current rates of consumption, Canada has sufficient natural gas to meet the country’s needs for 300 years, meaning we have ample supplies for export.
Natural Gas Complements Renewables:
Renewable energy will continue to expand in the years to come. As the world’s population continues to grow, we will need more of ALL sources of energy to meet the growing demand. Natural gas and renewables work in partnership as renewable power can be intermittent (sometimes the sun doesn’t shine, and the wind doesn’t blow) so natural gas often backs up renewable power generation. Our economy relies on a consistent energy supply to function. Think how frustrating it is when you lose your power at home or the office? Natural gas prevents this when it complements renewable energy production.
Canada: The world’s best LNG
Canada’s LNG projects will produce LNG with the lowest emissions anywhere in the world: 35-percent lower than the best-performing LNG projects and up to 60-percent lower than the overall global average.
China is adding one new coal-fired power plant every two weeks to meet its growing energy needs. Canadian LNG burns 40 per cent cleaner than coal. Exporting our sustainable and renewable LNG is how Canada can best take climate action.
Canada’s LNG Opportunity:
Prior to the pandemic, the global demand for natural gas and oil grew continuously for 20 years. As global economies re-open over the coming years, oil and natural gas demand is expected to rebound, and long-term demand will be sustained due to population growth and rising standards of living.
As we emerge from the economic challenges brought about by the global pandemic, a thriving LNG industry could generate over $500 billion in new investment, generating over 100,000 jobs in Canada – jobs our country will desperately need. And with annual tax and royalty payments estimated in excess of $2.3 billion, the LNG sector would become one of the largest revenue generators in British Columbia.
Canadians have much to be proud of for handling the pandemic, yet difficult challenges lie ahead. Unemployment is high, businesses across the country have been decimated, prospects for good jobs are diminishing while personal and collective debt is rising. This circumstance presents a critical risk to Canada’s economy, social institutions and quality of life.
Developing Canadian LNG is how we create jobs, and generate revenues to fund our social programs and pay down debt.
The LNG industry is extremely competitive and global investors look for jurisdictions with competitive attributes such as favourable policies, location, natural gas supply, supporting infrastructure, regulatory processes, and availability of skilled labour. While B.C. meets many of these criteria, creating a large LNG industry in Canada faces a number of challenges and barriers.
Canada’s uncompetitive tax and fiscal environment, regulatory approval timelines (Bill C-69), as well as a well-financed, and motivated, anti-development movement are all a risk to a successful, sustainable, Canadian LNG industry.