Canada is on track to become ‘one of the world’s largest LNG suppliers’: Energy Minister

Canada’s energy minister says the country is poised to become one of the world’s largest suppliers of liquefied natural gas, exporting up to 100 million tonnes a year.

Tim Hodgson expressed this optimistic outlook to a parliamentary committee earlier this month, pointing out that countries like Japan, South Korea, China and India all want Canadian gas.

“If we deliver up to 100 million tonnes per year, as proponents hope, we would be one of the largest suppliers of LNG in the world,” he said.

Achieving this goal would require more than just the LNG projects currently underway, which at full capacity would provide less than 50 million tons for export each year.

Hodgson’s comments came ahead of Prime Minister Mark Carney’s trip to India, where LNG is expected to be the focus.

Exporting LNG requires special facilities that allow shippers to cool natural gas to -162°C via standard pipelines before it can be loaded onto ships. The country’s first and only export terminal, LNG Canada, began operations in June in Kitimat, B.C

But other BC projects are either under construction or being proposed.

“From a Canadian perspective, just from an economic perspective, they are some of the most impactful projects we can undertake,” Hodgson said.

Hodgson did not elaborate on which specific projects would help Canada become one of the largest LNG exporters. Canada is currently the sixth largest exporter in the world, behind countries such as Australia and Qatar.

Projects that could contribute significantly to Canada’s GDP include LNG Canada’s second phase and Ksi Lisims, both of which have been referred to Canada’s Major Projects Office. Ksi Lisims is a proposed floating facility owned by the Nisga’a Nation on the north coast of British Columbia, near the community of Gingolx.

These projects could increase LNG export capacity up to 40 million tonnes per year. Another five million tonnes could be added by the Woodfibre and Cedar LNG projects, both also under construction in B.C

But even if all of these projects reached full capacity, Canada would not even be halfway to Hodgson’s goal. It’s not clear from the minister’s comments how Canada could more than double that capacity, but there are a number of projects still in the early stages that could help.

Marinvest Energy Canada is pursuing a project in Baie-Comeau, Que. The proponent hasn’t released many details publicly, but it wants to build a plant and a pipeline.

A project to export Newfoundland’s offshore reserves is also in the works. Fermeuse Energy Limited aims to develop trillions of cubic feet of natural gas and process it into LNG.

Low-emission LNG?

Canadian allies view LNG as a “transitional fuel” — a cleaner alternative to burning coal, especially as artificial intelligence becomes an electricity hog, Hodgson said.

He added that Canadian LNG is considered “low emissions.” This is partly because the country’s colder climate requires less energy to cool the gas until it becomes a liquid. The shorter distance between British Columbia and Asian markets also means less tank fuel is required than transporting LNG from the Atlantic.

But an analysis by a clean energy think tank suggests Canadian officials may be overstating the environmental friendliness of their LNG.

According to the International Institute for Sustainable Development, LNG Canada Phase 1 burns natural gas to power equipment. At full capacity, it is expected to emit 2.1 million tons of greenhouse gases annually.

That’s the equivalent of about 450,000 passenger vehicles, making “LNG Canada Phase 1 one of the most climate-damaging projects in all of British Columbia,” it says to the institute.

B.C.’s other planned LNG projects – Woodfibre, Cedar and Ksi Lisims – are expected to be powered by hydroelectric power, which will help them achieve net-zero operating emissions.

However, the British Columbia government is no longer requiring these projects to be net zero by 2030, only Net zero ready.

Most LNG emissions do not come from these plants either. Far more pollution comes from extraction, transport and incineration – so-called life cycle emissions.

“The important thing here is to remember that LNG is a fossil fuel,” said Steven Haig, a policy adviser at the International Institute for Sustainable Development. “It emits greenhouse gas emissions across its entire value chain, accelerating global climate change, and simply put, it is not a standalone climate solution.”