Canada is poised to become ‘one of the world’s largest LNG suppliers’: energy minister
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Canada’s energy minister says the country is poised to become one of the world’s leading liquefied natural gas exporters, exporting 100 million tonnes a year.
Tim Hodgson presented that positive view to a parliamentary committee earlier this month, noting that countries like Japan, South Korea, China and India are all looking for Canadian gas.
“If we deliver, as we hope the proponents will deliver, up to 100 million tonnes per year, that would make us the largest LNG supplier in the world,” he said.
Achieving that goal will require more than just the LNG projects currently underway – those at full capacity will provide less than 50 million tonnes for export each year.
Hodgson’s comments came ahead of Prime Minister Mark Carney’s trip to India where LNG is expected to be concentrated.
Offloading LNG requires special facilities that allow shippers to cool conventional pipeline natural gas to -162 C before it is loaded onto ships. The country’s first and only export terminal, LNG Canada, became operational in June in Kitimat, BC
But other BC projects are under construction or proposed.
“From a Canadian perspective, from an economic perspective, they are among the most impactful projects we can do,” Hodgson said.
Appearing at the Standing Committee on the Environment on Thursday, Energy Minister Tim Hodgson said if Canada delivers on its liquefied natural gas goals ‘as we hope, its supporters will eventually increase our production to 100 million tonnes a year.’
Hodgson did not elaborate on which specific projects would help Canada become one of the leading LNG traders. Canada is currently the sixth largest country in the world, behind countries including Australia and Qatar
Among the projects that could add significantly to Canada’s GDP are the second phase of LNG Canada and Ksi Lisims, both of which have been referred to Canada’s Major Projects Office. Ksi Lisims is a proposed floating settlement owned by the Nisga’a Nation on BC’s North Coast, near the community of Gingolx.
These projects could bring LNG export capacity up to 40 million tons per year. Another five million tonnes could be added through the Woodfibre and Cedar LNG projects, both of which are also under construction in BC.
But even if all those projects reach full capacity, Canada will be less than half of Hodgson’s target. According to the minister, it is not yet clear whether Canada can double that capacity, but there are a variety of projects that are still in their early stages that could help.
Marinvest Energy Canada is pursuing a project in Baie-Comeau, Que. The proponent has not released many details publicly, but wants to build a plant and pipeline.
A project to export Newfoundland’s coastal reserves is also in the works. Fermeuse Energy Limited wants to develop billions of cubic feet of natural gas and process it into LNG.
Low-emission LNG?
Canadian allies view LNG as a “revolutionary fuel” — a cleaner alternative to burning coal, especially as artificial intelligence turns into an electricity hog, Hodgson said.
He added that Canadian LNG is considered “low emissions.” This is because the country’s cold climate requires less energy to cool the gas into a liquid. The shorter distance between BC and Asian markets also means less tanker fuel is needed than shipping LNG from the Atlantic.
Global demand for liquefied natural gas is growing, and Canada is trying to re-establish itself as a major player with several energy infrastructure projects in development. CBC’s Paula Duhatschek reveals what it might take and why some worry Canada is acting too late.
But an analysis by a clean energy think tank suggests Canadian officials may be overstating the green credentials of its LNG.
According to the International Institute for Sustainable Development, LNG Canada Phase 1 is burning natural gas for electrical appliances. It is expected to emit 2.1 million tons of greenhouse gas annually at full capacity.
That’s roughly the equivalent of 450,000 passenger cars, making “LNG Canada Phase 1 one of the most climate-polluting projects in all of BC,” according to the agency.
Some of BC’s proposed LNG projects – Woodfibre, Cedar and Ksi Lisims – are expected to be powered by hydroelectricity, which will help them achieve net-zero operational emissions.
The BC government, however, no longer requires these projects to be net-zero by 2030, but only positive net-zero.
Most LNG emissions don’t actually come from those facilities, either. Much more pollution comes from its extraction, shipping and burning – what are known as life-cycle emissions.
“It’s important to remember here that LNG is a fossil fuel,” said Steven Haig, a policy adviser at the International Institute for Sustainable Development. “It drives greenhouse gas emissions throughout their value chain, accelerates global climate change, and simply put, is not the solution to climate change itself.”
