EBY: LNG Canada Will Increase National GDP by 0.4%, Create Billions in Benefits

EBY: LNG Canada Will Increase National GDP by 0.4%, Create Billions in Benefits

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EBY says LNG Canada will boost economy by 0.4 percent cover

Canada stands at the cusp of a new economic era as British Columbia’s Premier David Eby marks a historic milestone: the inaugural shipment of LNG Canada from the province's west coast to world markets.

Announced on June 25th, Eby made a powerful statement about the immense positive impact Canada’s first LNG export facility will have on the country [1].

“In the next few days, British Columbia will be marking the first cargo of LNG Canada shipping from the west coast of British Columbia to international markets, around the world,” the Premier said.

“This is a very significant project for our province. This is the largest private sector investment in our province's history… It will result in a 0.4% increase in the nation's GDP.”

The magnitude of this impact cannot be overstated. LNG Canada, representing a $40 billion private-sector investment—the largest in Canadian history—is just one of a handful of projects to come on the west coast, including a potential LNG Canada Phase 2, which would double the facility’s output to 24 million tonnes per annum (mtpa).

Eby went on to highlight LNG Canada’s significant economic impact, to be felt across the country.

“Just this project alone, it will bring billions of dollars in benefits to British Columbia and to the nation. It will be a benefit to both British Columbia and Alberta and all Canadians.”

As the world’s fifth-largest natural gas producer and sixth-largest exporter, Canada is well-positioned to capitalize on its robust natural gas reserves. With the arrival of LNG Canada and other similar facilities on the horizon, the sector is poised to become increasingly important to national economic growth.

A 2020 report by the Conference Board of Canada found that a healthy LNG export sector on B.C’s coast could generate over $90 billion in revenue for governments through to 2064, $78 billion of which would be claimed by B.C.

“And it is an example of what we are focused on as a government: delivering for British Columbians. Clean, reliable energy to power growth, fast-tracking projects to get them done and using the revenues from those projects to strengthen the services that families depend on,” said the Premier.

New revenue streams are crucial for B.C. and Canada to fund social programs such as education and healthcare, and to build and maintain the public infrastructure needed to support our nation's growth.

Eby gets it. Money doesn’t grow on trees.

Beyond public revenues, the job creation potential of Canadian LNG development is staggering. The same report estimated that more than 96,000 jobs a year—71,000 of them in B.C.—could be supported by a ~54 mtpa capacity LNG export sector, translating to more than $6 billion in annual wages for workers.

Premier Eby - B.C. isn't in the business of turning down development

But perhaps nothing speaks more to the importance of Canadian LNG projects than the deep partnerships formed with Indigenous communities. Projects like Cedar LNG, led by the Haisla Nation, are setting the bar as Canada’s largest majority Indigenous-owned infrastructure project.

Coastal GasLink, which supplies both Cedar LNG and LNG Canada with gas feedstock, created over 25,700 jobs in B.C. and invested $1.8 billion in goods and services from local and Indigenous businesses. The pipeline also offered First Nations along its route a 10% equity stake, of which 17 communities signed on and are now part owners of the project.

These partnerships are a compelling example of economic reconciliation in action, creating meaningful, once-in-a-lifetime opportunities for First Nations to generate substantial own-source revenues that support the socio-economic development of their communities.

LNG Canada may be the first of such projects, but it certainly isn’t the last.

“It’s almost inevitable that Canada becomes a top LNG player,” said Heather Exner-Pirot, Director of Natural Resources with the Macdonald-Laurier Institute, in an interview with CBC.

“Because not everyone has the 100-years plus of reserves that we have, but the population is still growing. And so as other people deplete their resources, Canada is going to need to step up. There will be demand for Canada to step up and fill that global demand,” she continued.

Canada currently has a handful of other LNG export projects in various stages of development within B.C., representing $109 billion in direct capital investment and a production capacity of over 50 mtpa.

Other such developments like Ksi Lisims LNG—an Indigenous-led facility in northern B.C.—is estimated to add $55 billion in economic activity over its lifetime. Located in Nisga’a territory, it will also play a significant role in fostering economic reconciliation with remote First Nations communities across northern B.C.

At one point, Canada had ~200 mtpa of LNG projects proposed by private companies representing hundreds of billions of dollars in direct investment – about four times the capacity of the current seven projects underway on the west coast.

It hasn’t been easy getting to where we are now. But it’s better late than never.

Canada’s current LNG ventures mean a brighter economic future not just for Canadians, but for countless Indigenous Peoples who live across our remote landscapes. The economic benefits of LNG development are indisputable: billions in government revenues, tens of thousands of high-quality jobs, long-term prosperity for Indigenous partners, and a measurable boost to our national GDP - at a time when Canada's economy needs all the help it can get.

The launch of LNG Canada signals more than the start of exports—it marks the next chapter in our energy story, with both Canadians and First Nations poised to share in its rewards for generations to come.

Global LNG demand is growing, up to 60% through 2040 according to the latest industry outlook. Canada should stand ready to fast-track LNG projects that will create significant economic opportunities for our families here at home.

The world is waiting for our democratically produced, reliable supply. Let’s seize this opportunity together.

SOURCES:

1 - https://www.cpac.ca/headline-politics/episode/first-production-of-liquefied-natural-gas-in-bc--june-25-2025?id=55dcb900-9bf8-4ee9-ab2d-ca1e939a23be