Canada’s energy minister, Tim Hodgson, says the country is poised to become one of the world’s largest exporters of liquefied natural gas (LNG), potentially shipping as much as 100 million tonnes per year. Hodgson shared this outlook earlier this month with a parliamentary committee, noting demand from countries including Japan, South Korea, China, and India.
Canada’s LNG Ambitions
According to Hodgson, reaching an export capacity of 100 million tonnes annually would place Canada among the top LNG suppliers globally. However, current and planned projects are expected to deliver less than 50 million tonnes per year. Hodgson’s comments preceded Prime Minister Mark Carney’s trip to India, where LNG is expected to be a key topic of discussion.
Exporting LNG requires specialized facilities to cool natural gas to -162 C before it can be shipped. Several projects are currently under construction or proposed in British Columbia, including the second phase of LNG Canada and the Ksi Lisims project, a floating facility owned by the Nisga’a Nation. These projects could collectively add up to 45 million tonnes of annual export capacity. Additional projects, Woodfibre and Cedar LNG, are also under construction and could add another five million tonnes annually.
Projects are also being pursued outside of British Columbia. Marinvest Energy Canada is planning a facility in Baie-Comeau, Quebec, and Fermeuse Energy Limited is working to develop offshore reserves in Newfoundland.
The “Low-Emission” Debate
Hodgson stated that Canadian LNG is viewed by allies as a “transition fuel” – a cleaner alternative to coal – and as “low emission” due to the country’s colder climate and shorter shipping distances to Asian markets. However, an analysis by the International Institute for Sustainable Development suggests that Canada may be overstating the environmental benefits of its LNG.
The Institute found that LNG Canada Phase 1, which burns natural gas to power its equipment, is expected to emit 2.1 million tonnes of greenhouse gas pollution annually, equivalent to roughly 450,000 passenger vehicles. Newer projects, like Woodfibre, Cedar, and Ksi Lisims, are expected to be powered by hydroelectricity and achieve net-zero operational emissions. However, the British Columbia government no longer requires LNG projects to be net-zero by 2030, only “net-zero ready.”
Frequently Asked Questions
What is LNG?
LNG stands for liquefied natural gas. It is natural gas that has been cooled to a liquid state, making it easier to transport.
How much LNG does Canada currently export?
Canada is currently the world’s sixth-largest exporter of LNG.
What is the target for Canadian LNG exports?
Canada’s energy minister, Tim Hodgson, has stated a goal of exporting up to 100 million tonnes of LNG per year.
As Canada considers expanding its role in the global LNG market, will the economic benefits outweigh environmental concerns?
