The post-COVID economic recovery will require a thriving private business sector to contribute taxes, grow jobs, and create opportunities for all Canadians. Canada has a massive opportunity to create those jobs in one of the country’s most innovative and sustainable industries: Liquefied Natural Gas (LNG).
An established, proven source of reliable, affordable, clean energy, LNG development offers Canada a clear path to an inclusive, sustainable economic recovery. The Conference Board of Canada recently released some impressive findings on just how big Canada’s LNG opportunity truly is:
- Between 2020 and 2064, annual investments of $11 billion, or $500 billion over the period.
- Canada’s GDP would increase by $11 billion per year.
- BC’s GDP would increase by $8 billion annually, or over 3%.
- Alberta’s GDP would increase by $1.6 billion annually, or 0.5%.
- Ontario’s GDP would increase by $1 billion annually, or 0.1%.
- National employment would increase by 96,550 jobs over the life of the project.
- The LNG industry would boost wages by over $6 billion per year.
- BC’s annual royalty and tax revenue would be nearly $2 billion, making it the largest tax generator in that province.
It’s easy to spend money, but it’s a lot harder to earn it. Canada, including every province and territory, is going to need every dollar available as we emerge from the pandemic. The findings from The Conference Board of Canada proves LNG development is a clear path to sustainable recovery.
The IT sector is often the talked-about go-to for diversifying the economy, and while it’s an important sector, it only accounted for $1.197 billion in annual capital spending in BC between 2006 – 2019 compared to $4.168 billion from oil and gas extraction. Oil and gas, and LNG, are capital-intense industries that bring a lot of value to the country. In fact, when LNG Canada made the decision to proceed with its facility in Kitimat, it was the largest private sector investment in Canadian history.
The Federal Government, through Natural Resources Canada, is excited about the prospects for LNG due to the growing demand in the Asia-Pacific region as result of the phasing out of coal-fired power. There are growing markets that want Canada’s sustainably produced products, and Canada needs to access them.
India alone is aiming to increase its LNG imports from 6% to 15% by 2025. India’s government understands the value that reliable, affordable, clean natural gas can bring to its large, developing nation. Access to LNG can help lift people out of poverty.
A Chinese energy consultant is quoted as saying that China’s demand for LNG is “almost infinite” because of their coal-to-gas switching campaign. Although China has some domestic supplies of natural gas, they currently only meet 57% of their demands; therefore, imports are necessary - Canadian LNG can fill the gap.
Canada’s LNG facilities will produce the lowest amount of GHG emissions in the world, something we’ll all benefit from. However, Canada is lagging behind other natural gas producing nations in getting LNG facilities built. Eighteen LNG export facilities have been proposed; however, so far there is only one purpose built LNG export facility that is under construction, LNG Canada. There is one LNG import terminal in Saint John, NB.
If you support natural gas and LNG, talk to your elected representatives, friends and family. Let’s share this good news story.