- Canada has the potential to become a major LNG supplier for Asian and other markets
- Canada’s LNG projects are more environmentally friendly than the global average and can help lower global coal consumption
- Canada has a location advantage to deliver LNG to Asia with less emissions and costs
- Canada’s LNG industry can generate economic and social benefits for Canadians, especially Indigenous peoples
The global liquefied natural gas (LNG) market is undergoing a major shift as the U.S., the world’s largest LNG exporter, has paused approvals of new LNG export terminals due to climate concerns. The U.S. LNG industry has been growing rapidly in recent years, driven by abundant shale gas production, technological innovation, and growing demand from Europe and Asia, especially after Russia’s invasion of Ukraine in 2022.
On January 26, 2024, the Biden administration announced that it would delay consideration of new or pending LNG export proposals, citing the need to account for the greenhouse gas emissions impact of these projects. The decision came as a shock and disappointment to many in the U.S. energy industry, as well as its allies and customers who depend on U.S. gas for energy security and diversification.
This development creates an opportunity for Canada to become a major player in the LNG market, as it has several advantages that make it an attractive and competitive LNG supplier for Asian and other markets.
First, Canada’s LNG projects are more environmentally friendly than the global average, thanks to the use of hydroelectricity and renewable energy sources to power the liquefaction process. For example, the LNG Canada terminal in Kitimat, B.C., which is expected to become operational later this year, will have an emissions intensity of 0.15 tonnes of CO2 equivalent per tonne of LNG produced, compared to the global average of 0.36 tonnes.
Second, Canada has a location advantage to deliver LNG to Asia, which is the largest and fastest-growing LNG market in the world. The shipping distance from Kitimat to Tokyo is about 8,000 kilometres, compared to about 16,000 kilometres from the U.S. Gulf Coast. This means less emissions and costs for Canadian LNG transportation.
Third, Canada’s LNG industry can generate significant economic and social benefits for Canadians, especially Indigenous peoples who have been involved in the development and ownership of these projects. The LNG Canada project alone is expected to create 10,000 jobs during construction and generate $24 billion in government revenues over its lifetime. The project also has the support of all 20 First Nations along its pipeline route, who will receive equity ownership, contracting opportunities, and community benefits agreements.
Canada has missed the first wave of the global LNG boom, but it still has a chance to catch up and make a positive contribution to the world’s energy transition. With its abundant natural gas resources, low-emission technology, strategic location, and strong partnerships, Canada can become a major LNG supplier that meets the needs of both its customers and the climate. This could create many job opportunities in Canada, especially in British Columbia, where several LNG export projects are under construction or proposed. According to LNG Canada, the first large-scale LNG export facility to be built in Canada, the project will create up to 10,000 jobs at the peak of construction and up to 950 permanent jobs once operational. Other projects, such as Woodfibre LNG, Cedar LNG, and Ksi Lisims LNG, will also generate employment for skilled workers, contractors, and Indigenous peoples. The LNG industry will also require trained operators to monitor and control the production and processing of natural gas into LNG. To find job opportunities in the LNG industry, visit the websites of LNG Canada, its engineering and construction partner JFJV, as well as the WorkBC Job Search portal .