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Federal government continues to reject golden opportunities to export LNG

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5 minute read

From the Fraser Institute

By Julio Mejía and Elmira Aliakbari

A recent report released by the National Bank of Canada underscores the potential environmental impact of transitioning from coal to natural gas in countries such as India. According to the report, by 2030 the cumulative effect of this transition would result in up to four times fewer greenhouse gases emissions than what Canada emitted in 2021.

Once again, Canada has missed a crucial opportunity to supply clean and reliable energy to an ally. Polish President Andrzej Duda recently expressed interest in purchasing Canadian liquefied natural gas (LNG) from Canada but the Trudeau government did not offer any concrete commitment in response. We’ve seen this movie before.

During his recent visit to Ottawa, Greek Prime Minister Kyriakos Mitsotakis received the same noncommitment. In January 2023, Japanese Prime Minister Fumio Kishida came to Canada hoping to secure a reliable energy source. In response, Trudeau expressed the importance of Canada as a global energy supplier, only to add the disclaimer that the world is “aggressively” moving towards decarbonization. And in 2022, after Putin’s invasion of Ukraine led Germany to seek ways to reduce its reliance on Russian energy sources, German Chancellor Olaf Scholz asked to buy Canadian LNG but the prime minister gave him the cold shoulder. Apparently, Trudeau found no compelling “business case” to export LNG to Europe’s largest economy.

Of course, Canada’s vast natural resources could make a significant positive impact on global energy security, reliability and emissions reduction by reducing reliance on coal while also creating jobs and economic opportunity here at home. Energy supply shortages have already forced European countries to revert to coal-fired power plants—coal contributes more CO2 emissions per unit of energy than natural gas. In the developing world, India aims to double coal production by 2030 to meet the demands of its burgeoning economy and population. Similarly, China quadrupled the amount of new coal power in 2022 and has six times as many plants under construction as the rest of the world combined.

A recent report released by the National Bank of Canada underscores the potential environmental impact of transitioning from coal to natural gas in countries such as India. According to the report, by 2030 the cumulative effect of this transition would result in up to four times fewer greenhouse gases emissions than what Canada emitted in 2021. To put that in perspective, the impact would be even bigger than completely shutting down the Canadian economy.

Moreover, a recent McKinsey report anticipates an annual increase in global LNG demand of 1.5 per cent to 3 per cent by 2035. And according to the latest report by the International Energy Agency (IEA), limited new LNG production means supply will remain tight. The Biden administration recently halted LNG project approvals, increasing the need for Canada to establish its own infrastructure if we’re to seize the opportunity and become a global LNG supplier.

Unfortunately, Canada currently has no operational LNG export terminals, with the first LNG facility expected to commence exporting by 2025. The Trudeau government has frustrated the development of other LNG terminals, primarily through government regulatory barriers including long approval timelines. The government’s emissions caps on the oil and gas sector and federal Bill C-69 (which added more red tape and complexity to the assessment process for major energy projects) have also created uncertainty and deterred—if not outright prohibited—investment in the sector. Additionally, the British Columbia government’s “CleanBC” plan to reduce greenhouse gas emissions has added more regulation. Not surprisingly, a recent survey revealed that investors identify regulatory uncertainty as a major deterrent to investment in Canada’s oil and gas sector.

With the proper polices in place, Canada could provide an energy alternative to our allies and other coal-consuming countries worldwide. The Trudeau government should acknowledge the environmental benefits of our natural gas resources, reform regulations for energy infrastructure projects so they’re more competitive, and allow our energy industry to be a leading source of clean and reliable energy, for the benefit of Canadians and the environment.

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Alberta

New children’s book demonstrates how the everyday world is connected to natural resources

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From the Canadian Energy Centre

‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’

After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.

Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.

“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.

“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.

The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.

Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.

Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre

“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.

“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”

Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.

She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.

Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.

Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.

“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”

Richens’ books can be purchased on her website at tcrenvironmental.com.

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Energy

Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean

Published on

From Energy Now

By Calgary MP Greg McLean

Government in Full Reverse

Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.

It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:

  • We need to diversify our resource trade
  • We need to build pipelines and infrastructure to get our exports to tidewater
  • We need to streamline our regulatory burden that stands in the way of development
  • We need to halt the escalating carbon tax
  • We need to reverse the capital gains tax increase

The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.

If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.

I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.

Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.


Minister Late to Critical Mineral Strategy

Here’s a gem of wisdom from December’s Fall Economic Statement:

Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices.  This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.

Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:

During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.

Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.

What a great idea!

Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:

Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.

Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.

FULL REPORT

Conservative Dissenting Recommendations

My question to the Minister:  ‘What took you so long?’

This approach was presented three and a half years ago – and the Government chose to ignore it then.  

No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:

  • The Clean Electricity Regulations (still opaque)
  • Canada’ role in shipping hydrocarbons to the world
  • Building energy infrastructure

To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies.  We effectively have not had a Minister of Natural Resources under his tenure.

Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.

It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day.  Time and our future have been wasted.

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