Liquefied natural gas (LNG) suppliers are confident that strong demand growth in Asia will underpin the development of more export facilities over the next decade.
According to Wood Mackenzie via oilprice.com, Asia’s LNG demand grew by a staggering 21 million tonnes this year, a strong rebound from the pandemic-fuelled losses seen in 2020. And the region’s growing need for natural gas isn’t stopping there, with demand projected to increase by a whopping 50 per cent by 2050.
So, where will all that supply come from, you might ask? For now, it seems the world’s top current LNG exporters will have the capacity to do so - at least until Canada completes its first liquefaction facility.
Qatar, Australia and Russia are full throttle ahead with plans to expand their LNG capabilities, all host to significant new projects that reached a final investment decision (FID) in 2021. Meanwhile, despite major projects stalling due to pandemic concerns this past year, the U.S. is on track to become the world’s largest LNG exporter by 2022.
With the increasing demand for natural gas and LNG in Asia through 2050, it only makes sense that Canada gets into the game. The facts around LNG in Canada make it abundantly clear that the world needs more Canadian natural gas on global markets -- see for yourself!
10 Reasons Why the World Needs More Canadian LNG
#1 – Global demand for LNG is projected to increase by up to 50 per cent by 2030, making it the fastest-growing hydrocarbon source of energy over the next decade. (Morgan Stanley)
#2 – The only current project under construction in Canada, LNG Canada, will run almost entirely on renewable hydropower and have a projected GHG emissions profile of 32 per cent lower than the world’s currently best-performing LNG plants. (LNG Canada)
#3 – Replacing coal with Canadian LNG for power generation in China could reduce GHG emissions by up to 64 per cent. (Greenhouse-gas emissions of Canadian liquefied natural gas for use in China: Comparison and synthesis of three independent life cycle assessments)
#4 – It takes 10 days to ship LNG from Canada’s West Coast to Asia compared to 24 days from the U.S. Gulf Coast. Shorter shipping routes mean less fuel burned and GHGs emitted. (Shell)
#5 – Since 2010, coal-to-gas switching has saved 500 million tonnes of CO2 from being emitted into the atmosphere, an effect equivalent to putting an extra 200 million E.V.s running on zero-carbon electricity on the road. (International Energy Agency)
#6 – Woodfibre LNG, another up-and-coming facility in Canada, estimates it will reduce GHG emissions by 45 per cent when its product is used to replace coal-fired power generation in China. (Woodfibre LNG)
#7 – Ksi Lisims LNG, an Indigenous-led project in the preliminary stages of development in Canada, has pledged to operate with a net-zero emissions profile within three years of commencing operations. Now that’s unheard of. (Ksi Lisims LNG)
#8 – Gas liquefaction in cold climates is comparably easier than in warmer regions, saving energy and reducing GHG emissions associated with the conversion process (Comparison of GHG Emissions from LNG Canada to American Alternatives: The Canadian Advantage).
#9 – Canadian LNG used to displace coal-fired power generation in China could reduce annual CO2 emissions by up to 60 million tonnes, the equivalent of removing 80 per cent of all the cars on the roads in Canada (LNG Canada).
#10 – Of the world’s top 10 natural gas exporters, Canada is a leader on the following ESG indices:
- Green Future Index
- Democracy Index
- Global Peace Index
- Rule of Law Index
- Corruptions Perception Index
- Global Press Freedom Index
- Sustainable Development Index
- Women, Peace, Security Index
- Yale Environmental Performance Index
- Social Progress Index
- World Bank Governance Index
Healthy B.C. LNG Sector = Major Economic Benefits for Canadians
A July 2020 report by the Conference Board of Canada found that a healthy LNG industry in British Columbia producing 56 million tonnes of product each year could generate economic benefits hard to look past for any Canadian. Those benefits include:
> $11 billion in total annual investment between 2020 and 2064, totalling more than $500 billion over that time frame
> Over $108 billion in provincial revenues between 2020 and 2064, the lion’s share ($94 billion) within British Columbia
> 96,550 more jobs and $6 billion in wages generated annually in Canada each year
> For British Columbia alone, over 71,000 more jobs a year and over $4.6 billion in wages
The World Needs More Canadian LNG!
The facts are clear: the world is better off with more Canadian-made LNG on global markets and our country would benefit enormously from an economic standpoint. It’s a win-win situation!
Let’s support the men and women working hard to make Canada a global LNG supplier to Asia and other parts of the world for the first time in history!
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