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Canadian Energy Centre

Indigenous trade mission to China highlights opportunity for B.C. LNG

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Karen Ogen is CEO of the First Nations LNG Alliance. Photo supplied to Canadian Energy Centre

From the Canadian Energy Centre

By Will Gibson

First Nations LNG Alliance CEO Karen Ogen takes message of coastal nations to Beijing

Participating in a recent trade mission to China has strengthened Karen Ogen’s view of the opportunity for B.C. liquefied natural gas (LNG). 

For the CEO of the First Nations LNG Alliance, one of 10 Indigenous business leaders in the Canada China Business Council’s trade mission to Beijing in late October, the opportunity was as obvious as the grey smog that blankets the air above China’s capital city on most days. 

“So much of the problem with smog and air quality stems from using coal-fired plants to generate electricity,” says Ogen, a former elected chief and councillor of the Wet’suwet’en First Nation.  

Researchers have found that switching Chinese coal plants to natural gas from Canada could reduce emissions by up to 62 per cent. 

“The Chinese don’t view LNG as a fossil fuel. They see it as an important part of moving towards carbon neutrality,” Ogen says. 

“There are huge opportunities for LNG in China and other Asian markets, especially for the coastal nations in British Columbia. The need is there, and the appetite is there. It’s up to us to take advantage of it.” 

Ogen previously took trips to China between 2015 to 2018. The most recent trade mission was organized by the Canada China Business Council specifically for Indigenous businesses, organizations and leaders to build connections and partnerships to develop export markets and sources of investment to facilitate exports. 

Ogen said the delegation gained valuable insights into new forces shaping China in the post-pandemic era, notably around using social media platforms such as TikTok as part of their marketing and e-commerce outreach to the Chinese market. But she remains struck by the appetite for LNG as a lever to lower emissions as energy demand rises. 

“China produces 30 per cent of the world’s greenhouse gas emissions — it’s the world’s largest emitter and they are committed to addressing that,” Ogen says. 

The U.S. Energy Information Administration projects natural gas demand in the Asia Pacific region will increase by 55 per cent in the next three decades, reaching 54 trillion cubic feet in 2050. 

Canada can make a meaningful difference in helping reduce emissions by supplying Asian markets with LNG, she says. 

“Converting coal-fired plants in China to LNG produced in Canada would make a bigger impact on greenhouse gas emissions than anything we do in Canada,” Ogen says.  

“Canada needs to think globally when it comes to climate change.” 

The United States already has seen this opportunity and is addressing it by aggressively expanding LNG exports. Already one of the world’s largest LNG exporters, there are five new LNG projects being built in the U.S. 

Canada’s first LNG project is under construction with first exports targeted by 2025. Two Indigenous communities on the B.C. coast are advancing their own proposed terminals, Cedar LNG and Ksi Lisims LNG 

Ogen doesn’t want to see Canada or B.C.’s coastal First Nations shut out of the opportunities she saw on the trade mission. 

“The message we received from China’s officials was very clear. They are prepared to do business with Canada and Canada’s Indigenous business community. There are opportunities for investment,” she says.  

“But we need governments to work with us to realize those opportunities. If we pursue them seriously, there are real economic benefits for Canada and First Nations.” 

And the five-day trade mission has convinced Ogen about the need to address the barriers for Canadian LNG. 

“We have a real opportunity to help address climate change while benefiting First Nations,” she says. “It makes too much sense for us not to fight for this.” 

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Artificial Intelligence

World’s largest AI chip builder Taiwan wants Canadian LNG

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Taiwan Semiconductor Manufacturing Company’s campus in Nanjing, China

From the Canadian Energy Centre

By Deborah Jaremko

Canada inches away from first large-scale LNG exports

The world’s leading producer of semiconductor chips wants access to Canadian energy as demand for artificial intelligence (AI) rapidly advances.  

Specifically, Canadian liquefied natural gas (LNG).  

The Taiwan Semiconductor Manufacturing Company (TSMC) produces at least 90 per cent of advanced chips in the global market, powering tech giants like Apple and Nvidia.  

Taiwanese companies together produce more than 60 per cent of chips used around the world. 

That takes a lot of electricity – so much that TSMC alone is on track to consume nearly one-quarter of Taiwan’s energy demand by 2030, according to S&P Global. 

“We are coming to the age of AI, and that is consuming more electricity demand than before,” said Harry Tseng, Taiwan’s representative in Canada, in a webcast hosted by Energy for a Secure Future. 

According to Taiwan’s Energy Administration, today coal (42 per cent), natural gas (40 per cent), renewables (9.5 per cent) and nuclear (6.3 per cent), primarily supply the country’s electricity 

The government is working to phase out both nuclear energy and coal-fired power.  

“We are trying to diversify the sources of power supply. We are looking at Canada and hoping that your natural gas, LNG, can help us,” Tseng said. 

Canada is inches away from its first large-scale LNG exports, expected mainly to travel to Asia.  

The Coastal GasLink pipeline connecting LNG Canada is now officially in commercial service, and the terminal’s owners are ramping up natural gas production to record rates, according to RBN Energy. 

RBN analyst Martin King expects the first shipments to leave LNG Canada by early next year, setting up for commercial operations in mid-2025.  

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Canadian Energy Centre

Report: Oil sands, Montney growth key to meet rising world energy demand

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Cenovus Energy’s Sunrise oil sands project in northern Alberta

From the Canadian Energy Centre

By Will Gibson

‘Canada continues to be resource-rich and competes very well against major U.S. resource bases’

A new report on North American energy highlights the important role that Canada’s oil sands and Montney natural gas resources play in supplying growing global energy demand.

In its annual North American supply outlook, Calgary-based Enverus Intelligence Research (a subsidiary of Enverus, which is headquartered in Texas and also operates in Europe and Asia) forecasts that by 2030, the world will require an additional seven million barrels per day (bbl/d) of oil and another 40 billion cubic feet per day (bcf/d) of natural gas.

“North America is one of the few regions where we’ve seen meaningful growth in the past 20 years,” said Enverus supply forecasting analyst Alex Ljubojevic.

Since 2005, North America has added 15 million bbl/d of liquid hydrocarbons and 50 bcf/d of gas production to the global market.

Enverus projects that by the end of this decade, that could grow by a further two million bbl/d of liquids and 15 bcf/d of natural gas if the oil benchmark WTI stays between US$70 and $80 per barrel and the natural gas benchmark Henry Hub stays between US$3.50 and $4 per million British thermal unit.

Ljubojevic said the oil sands in Alberta and the Montney play straddling Alberta and B.C.’s northern boarder are key assets because of their low cost structures and long-life resource inventories.

“Canada continues to be resource-rich and competes very well against major U.S. resource bases. Both the Montney and oil sands have comparable costs versus key U.S. basins such as the Permian,” he said.

“In the Montney, wells are being drilled longer and faster. In the oil sands, the big build outs of infrastructure have taken place. The companies are now fine-tuning those operations, making small improvements year-on-year [and] operators have continued to reduce their operating costs. Investment dollars will always flow to the lowest cost plays,” he said.

“Are the Montney and oil sands globally significant? Yes, and we expect that will continue to be the case moving forward.”

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