With the world coming to Vancouver for the international LNG2023 conference in early July, it is Canada's chance to showcase our emerging liquefied natural gas (LNG) export industry as the crucial opportunity it is.
With abundant resources to produce LNG, we have the potential to become a major player in the global LNG market, supplying cleaner energy to meet rising demand while helping to lower emissions by reducing the reliance on more carbon-intensive fuels, such as coal.
Canada's emerging LNG export industry also offers an incredible opportunity for economic prosperity. The development of LNG projects creates jobs, attracts investment, and generates substantial revenues, benefitting not only Canada but also the countries involved in these partnerships. The construction and operation of LNG facilities drive employment across a wide range of sectors, including engineering, manufacturing, environmental management, transportation, and technology. As companies invest, communities reap the benefits of increased economic activity. As an example, a recent study entitled “Our Communities Care” completed by iTotem Analytics for CAPP showed that between 2018 to 2021, British Columbia’s upstream natural gas industry spent over $4.7 billion in 140 municipalities and Indigenous Nations through the procurement of goods and services from more than 2400 B.C.-based businesses.
Canada's reputation for political stability and a secure trading partner makes us a top choice for countries who are looking to reduce their reliance on less secure regimes. Russia’s invasion of Ukraine has sent democratic nations around the world into a search for alternate sources of natural gas to keep their economies running and to provide energy to their citizens. Countries such as Japan and Korea are already invested in Canada’s natural gas and LNG industry and with efficient shipping lanes already established, there is greater opportunity for partnerships with countries in Asia. Contracts for LNG are often 15-to-20-year commitments, offering long-term economic stability for Canada while our international partners gain security in their critical energy supply.
By choosing Canadian LNG, countries can make progress towards their emissions reduction goals while meeting the energy demands of a growing population. Investing in Canada's LNG export industry allows nations to actively contribute to the progress of global decarbonization efforts by substituting higher-emitting fuels like coal with a cleaner energy alternative.
Canada’s stringent regulations and industry practices ensure that natural gas production and LNG projects operate with high environmental standards. We prioritize rigorous methane management, energy efficiency, and emissions reduction throughout the LNG value chain, from extraction to liquefaction and transportation. Canadian natural gas producers are committed to demonstrating that they can grow production while lowering emissions. From 2012 to 2021, natural gas producers in Canada grew production by 35 per cent while driving down direct greenhouse gas emissions from production (also known as scope 1 emissions) by 22 per cent and methane emissions by 38 per cent. Investing in Canada's LNG industry means supporting environmentally responsible practices and aligning with a nation dedicated to achieving a sustainable energy future.
As nations around the world come to Vancouver for LNG2023, we are proud to showcase the important opportunity presented by Canada's LNG export industry. Investing in our vast natural gas reserves, reliable supply, and commitment to environmental stewardship are expected to create significant economic, environmental, and social benefits.
Working together, we can unleash the transformative potential of Canada's LNG industry and grow our role as a supplier of secure, reliable, and lower emission energy to the world.
For more information about CAPP, visit www.capp.ca.
Lisa Baiton is CAPP president and CEO.