How fast is the world developing new liquefied natural gas (LNG) projects? In recent years, at a blistering speed!
LNG has been around for centuries. The LNG process was first discovered in 1820 by British Scientist Michael Faraday. Around 100 years later, the first LNG plants were built in the United States, and more projects soon followed to meet growing global energy demand without the need for pipelines [4].
Today, global energy security concerns and rapidly growing energy demand have catapulted LNG into the limelight.
Canada has been asked by its allies multiple times for the energy they need. And while the country navel-gazes on the opportunity to underpin global energy security, other nations are stepping up to the task.
With global LNG demand projected to increase 76 per cent by 2040 – from 397 million tonnes per annum (mtpa) up to more than 700 mtpa – the following timeline shows how eager producers abroad are to participate in the growing LNG market.
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Growing Global LNG Demand
Liquefied natural gas (LNG) headlines dominate energy news nowadays. Whether it be the announcement of massive new liquefaction export facilities on the Gulf Coast or speedily-built gasification import terminals across Europe, one thing is abundantly clear: buyers worldwide are scrambling for new LNG supplies to meet rapidly growing demand.
Nearly every gas-producing country is full speed ahead with developing their LNG export industries – save Canada, the world’s fifth-largest producer and sixth-largest exporter of natural gas [1].
While our country ponders the opportunity to provide energy security to the world at a turtle’s pace, other producers like Australia, Qatar and the U.S. are moving forward as fast as lightning.
Sure, Canada has made recent progress on projects like LNG Canada, Cedar LNG and Woodfibre LNG. However, the speed with which these projects have moved through the regulatory process is much slower than global competitors.
For example, Canada spent over 3.5 years to approve the now-cancelled Pacific Northwest LNG project in British Columbia, which proponents eventually shelved in July 2017.
Comparatively, the U.S. took just one year to approve Sabine Pass LNG in Louisiana. The facility made its first shipment of LNG in 2016, and today exports roughly 35 mtpa (more than twice the amount of LNG Canada’s first phase of 14 mtpa) [2]. By 2030, that figure is expected to grow to about 54 mtpa – more than all potential LNG export capacity underway in Western Canada [3].
A total of 18 LNG export facilities have been proposed in Canada over the past several years. Today, LNG Canada stands as the only project under construction.
Will Canada finally see the opportunity before us? The responsible development of Canadian LNG is a win for Canadian and Indigenous families, global energy security and climate action.
LEARN MORE
• Developing Canada's LNG Sector is the Pragmatic Thing to Do
• How B.C. LNG Helps Canadians, First Nations, Energy Security & Climate Action
• B.C. LNG to Asia Could 'Save a Canada' in Global Emissions: REPORT
• 11 Quotes by First Nations Leaders in Support of Canadian LNG Projects
• 5 Times Foreign Countries Asked Canada for LNG in 2022
• Canadian West Coast LNG Will Reduce Global GHG Emissions
Exporting our world leading low-emission #CanadianLNG is the pragmatic solution to help balance energy security AND sustainability.#BcLNG #BcPoli #CdnPoli pic.twitter.com/ZCrrKQ1EXI
— LNG Action (@LNGAction) August 29, 2023
SOURCES:
1. Government of Canada. (2022). Natural Resources Canada. Retrieved from https://publications.gc.ca/site/archivee-archived.html?url=https://publications.gc.ca/collections/collection_2022/rncan-nrcan/M136-1-2022-eng.pdf (Date Accessed: August 2023)
2. Offshore Technology. (n.d.). Sabine Pass Export LNG Liquefaction Terminal, the US. Retrieved from https://www.offshore-technology.com/marketdata/sabine-pass-export-lng-liquefaction-terminal-the-us/ (Date Accessed: August 2023)
3. Natural Resources Canada. (n.d.). Canadian LNG Projects. Retrieved from https://natural-resources.canada.ca/energy/energy-sources-distribution/natural-gas/canadian-lng-projects/5683 (Date Accessed: August 2023)
4. Fluenta. (n.d.). LNG: What it Is and How it is Made. Retrieved from https://www.fluenta.com/lng-what-is-it-and-how-is-it-made/ (Date Accessed: August 2023)