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The sudden, newfound support for LNG projects in Canada is truly remarkable.

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9 minute read

From Resource Works 

The sudden, newfound support for LNG projects in Canada is truly remarkable.

What’s all this? Green-leaning governments, federal and provincial, suddenly speaking in favour of liquefied natural gas (LNG) and other resource development?

It began with British Columbia Premier David Eby telling Bloomberg News that he’s optimistic that LNG Canada’s LNG-for-export plant at Kitimat, BC can be expanded in a way that satisfies its investors but without supercharging the province’s emissions.

This came as LNG Canada was reported continuing to look into possible Phase Two expansion. Such expansion would double the plant’s output of LNG to 14 million tonnes a year.

Industry reports say LNG Canada has been discussing with prime contractors their potential availability down the road. A key, though, is whether and how B.C. can provide enough electrical power.

The LNG Canada plant now is going through a pre-production testing program, and has finished welding on its first “train” (production line). LNG Canada is expected to go into full operation in mid-2025. And Malaysia’s Petronas (a 25% partner) has added three new LNG carriers to its fleet, to gear up for LNG Canada’s launch.

The Eby story noted that he has also thrown his support behind other projects — including hydrogen production and an electric-vehicle battery recycling plant — to create jobs and keep B.C.’s economy growing at a challenging time.

Then came Ottawa’s minister of innovation, science and industry, François-Philippe Champagne, who visited the Haisla Nation in B.C. to support its Cedar LNG project with partner Pembina Pipeline Corp.

Champagne declared: “This is the kind of project we want to see, where there are all the elements supporting attracting investments in British Columbia.”

His government news release said: “This project presents an exciting opportunity for Canada, as it is expected to commercialize one of the lowest-carbon-intensity liquified natural gas (LNG) facilities in the world and represents the largest Indigenous-majority-owned infrastructure project in Canada.”

Champagne went on to tell The Terrace Standard that “We are in active conversations with Pembina and Haisla First Nations. We are saying today that we will support the project, but discussions are still ongoing.’

There had already been reports that Export Development Canada is set to lend Cedar LNG $400-$500 million.

And then came federal minister Jonathan Wilkinson, announcing to the national Energy and Mines Ministers’ Conference in Calgary that Ottawa “will get clean growth projects built faster” by streamlining regulatory processes and moving to “make good approvals faster.”
Wilkinson has long talked, too, of streamlining and speeding up approval processes for resource projects in general, especially for mining for critical minerals. “(We’re) looking at how do we optimise the regulatory and permanent processes so you can take what is a 12- to 15-year process and bring it down to maybe five.”

The Canada Energy Regulator now is inviting input on its plans to improve the efficiency and predictability of project reviews.

All this as Deloitte Canada consultants reported that “the natural gas sector is poised for significant growth, driven by ongoing LNG projects and rising demand for gas-fired electricity generation in Canada.”

And energy giant BP said that under its two new energy ‘scenarios’, world demand for LNG in 2030 grows by 30-40% above 2022 levels, then increases by more than 25% over the subsequent 20 years.

Wilkinson earned pats on the back from some provincial ministers at the Calgary conference, but Alberta’s minister of energy and minerals, Brian Jean, aired concerns over how Ottawa’s new “greenwashing” law would impact the oil and gas sector.

Under it, companies (and individuals) must prove the truth of their public statements on climate benefits of their products or programs, or face potential millions in fines. But the ground rules for this legislation have not yet been announced.

(Jean was not alone. Other critics included CEO Karen Ogen of the First Nations LNG Alliance, who said the new law “could be used as one more tool to discourage resource companies that might seek Indigenous partnerships, and to obstruct Indigenous investment in energy projects, and frustrate Indigenous benefits from resource projects.”)

Wilkinson replied that the Competition Bureau needs to provide information so people understand how the rules apply and what is actionable.

“I think once that is done, this will be, perhaps, a bit of a different conversation. I would expect that the guidance will be something like folks simply have to have a good faith basis to believe what they’re saying. And assuming that is true, I think the sector probably will calm down.”

No pats on the back for Ottawa, though, from the mining industry or the oil-and-gas sector.

Aiming to combat China’s efforts to corner the market in critical minerals, Canada is making it harder for foreign firms to take over big Canadian mining companies. Major mining shares quickly dropped in value.

And Heather Exner-Pirot of the Macdonald-Laurier Institute and special advisor to the Business Council of Canada, says: “We produced less critical minerals last year than we did in 2019. We’re producing less copper, less nickel, less platinum, less cobalt, all these things. And the investment has not picked up; in real dollars it’s almost half of what it was in 2013 . . . and the regulatory system is still a huge barrier to that development.”

On top of that, the petroleum sector has long protested that federal moves to limit oil and gas emissions will, in practice, limit production.

While governments signalled support for LNG, supporters of natural-resource development quickly sent clear messages to governments of all levels.

Calgary-based Canada Action, for one, reminded governments that the oil and gas sector is projected to generate more than in $1.1 trillion in revenue to governments from 2000 through 2032.  And that the oil and gas sector supports nearly 500,000 direct and indirect jobs across the country.

Then the industry-supporting Fraser Institute pointed out that business investment in Canada’s extractive sector (mining, quarrying, and oil and gas) has declined substantially since 2014.

“In fact, adjusted for inflation, business investment in the oil and gas sector has declined 52.1 per cent since 2014, falling from $46.6 billion in 2014 to $22.3 billion in 2022. In percentage terms the decline in non-conventional oil extraction was even larger at 71.2 percent, falling from $37.3 billion in 2014 to $10.7 billion in 2022. . . .

“One of the major challenges facing Canadian prosperity are regulatory barriers, particularly in the oil and gas sector.”

Over to government, then, to reduce those barriers.

Following the recent positive moves listed above from two levels of government, there’s an obvious question: Would there happen to be federal and provincial elections in the offing?

Yes: B.C. will hold its next general election on or before October 19. And the feds go to the polls for an election on or before October 20.

Stand by for more promises.

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Daily Caller

East Anglia educated environmental scholar says it’s time to “Scrap Green Energy Handouts Once And For All”

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From the Daily Caller News Foundation 

By Vijay Jayaraj

Vijay Jayaraj is a Research Associate at the CO2 Coalition, Arlington, Virginia. He holds a master’s degree in environmental sciences from the University of East Anglia, U.K.

As the presidential election nears, it is reasonable to ask why the United States continues to give away billions to “avert” a fabricated climate crisis to countries that have little interest in participating in the charade beyond accepting handouts.

The United States has been a significant contributor to global climate initiatives, most notably through its involvement in the Paris Agreement.

At the 15th U.N. Climate Conference in 2009, rich countries pledged to provide $100 billion a year in climate finance by 2020 to assist developing nations fight climate change. This target was said to have been achieved for the first time in 2022, according to the Organization for Economic Cooperation and Development.

Having the world’s largest economy, the United States was expected to support a large portion of the Green Climate Fund  (GCF), which resulted in a promise of $1 billion.

GCF claims to be the “world’s largest dedicated climate fund” with a portfolio valued at $12 billion, or $45 billion when co-financing of projects is included. According to the GCF website, the fund delivers “transformative climate action in 140 countries” to keep “average global temperature rise well below 2 degrees Celsius.”

To which one might respond: Poppycock! No “climate action” will have a significant effect on temperatures, and the 2 degrees cited hardly matter environmentally in any case. Climate policies “will have a trivial effect on temperature but disastrous effects on people worldwide,” concludes a recent paper by Prof. Richard Lindzen of the Massachusetts Institute of Technology and Prof. William Happer of Princeton University.

Besides, contrary to doomsday predictions, the Earth is flourishing in many ways. Global poverty has decreased  dramatically over the past few decades, and agricultural yields have increased significantly partly, because of higher levels of atmospheric CO2. Natural disasters — often cited as evidence of climate change — are causing fewer deaths than ever before, despite population growth and development along coastlines and other vulnerable areas.

The outrage of having taxpayer money poured down the climate rat hole is compounded by the fact that recipients of GCF grants include China and India, the world’s largest emitters of greenhouse gases that are rapidly expanding consumption of fossil fuels. Meanwhile, the bone-headed policy of the United States is to reduce the use of these affordable and abundant fuels to the detriment of household budgets, business profitability, electric grid reliability and national security.

So, instead of pouring billions into international climate projects, the United States should prioritize its own energy security. This means developing its oil, coal and natural gas and strengthening partnerships with reliable allies like Canada.

The United States’ vast reserves of natural gas have been made available through advanced extraction technologies such as hydraulic fracturing and horizontal drilling, making the country one of the world’s leading producers. This abundance can ensure a reliable and cost-effective energy supply for other nations and reduce U.S. dependency on foreign sources, enhancing national security.

The intermittent nature of wind and solar power — both GCF darlings — necessitates backup power sources or massive battery storage systems that come with their own environmental and economic costs. The materials needed for batteries, for instance, are often mined in regions with poor environmental records or by using child labor.

By contrast, modern fossil fuel extraction in the United States and Canada is subject to some of the strictest environmental regulations in the world. Ironically, by outsourcing energy production to less regulated countries in the name of “going green,” the United States causes more environmental harm globally.

Russia’s invasion of Ukraine and the subsequent energy crisis in Europe starkly illustrated the dangers of energy dependence. European countries, having underinvested in fossil-fuel infrastructure and a reliance on Russian gas, found themselves in a precarious position.

This example alone is enough for the United States to reset its priorities. Promotion of failed and mostly unwanted “green” policies should be replaced with aggressive development of fossil fuel resources, as well as nuclear power and building robust energy partnerships with allies.

Vijay Jayaraj is a Research Associate at the CO2 Coalition, Arlington, Virginia. He holds a master’s degree in environmental sciences from the University of East Anglia, U.K.

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Daily Caller

Biden-Harris Admin’s Multi-Billion Dollar Electric School Bus Program Is A Huge Gift To China, House Report Finds

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From the Daily Caller News Foundation 

By Owen Klinsky

The Biden-Harris administration’s $5 billion Clean School Bus Program uses nearly 400% more taxpayer dollars per school bus and benefits the Chinese Communist Party (CCP), a House report revealed Tuesday.

The 51-page report from the House Committee on Energy and Commerce found promoting electric school buses and other electric vehicles (EVs) enriches the CCP as the EV supply chain is roughly 90% dependent on China, raising both national security and human rights concerns. It also highlighted immense expenses for taxpayers, with the average electric school bus under the first iteration of the Clean School Bus Program — the first of three iterations — costing $381,191, nearly four times that of a typical full-sized diesel school bus.

“It is clear the $5 billion Clean School Bus Program is overall a failure and, in many cases, a waste of Americans’ hard-earned taxpayer dollars,” Republican Congresswoman Cathy McMorris Rodgers, who chairs the House Committee on Energy and Commerce, said in a statement regarding the report’s findings. “The program, led by the radical Biden-Harris EPA [Environmental Protection Agency], props up a market that relies heavily upon a supply chain dominated by the Chinese Communist Party.”

Funded by the 2021 Bipartisan Infrastructure Law, the Clean School Bus Program provided the Biden-Harris EPA with funds over five years to “replace existing school buses with zero-emission and clean school buses.”

China currently accounts for approximately two-thirds of global EV battery cell production, while the U.S. manufactured just 7% as of 2022, raising national security concerns as the U.S. would likely have to depend on Chinese EV technology for its electric school buses, according to the report. Furthermore, the government-subsidized purchases of electric school buses under the Clean School Bus Program incentivize pre-existing human rights abuses in the EV supply, including the use of Uyghur forced labor in China’s Xinjiang region.

The report also identified limited range as an issue, with standard electric school buses from leading manufacturer BlueBird able to travel just 120 miles on a single charge, while some propane models can travel 400 miles before needing to refuel. The range problem can also be exacerbated by cold and warm weather conditions, with a study from the National Renewable Energy Laboratory finding electric transit buses lose roughly a third of their range at 25 degrees Fahrenheit compared to ideal conditions.

Electric school buses also increase the risk of fraud due to a lack of documentation requirements for contractors, with the EPA relying solely on self-certified applications and estimates created by applicants, according to the report. A separate July report from a Maryland county’s Office of the Inspector General resulted in millions of dollars in “wasteful spending.”

“The EPA launched the Clean School Bus program without sufficient safeguards and considerations for practical hurdles applicants may face. For example, the EPA did not require documentation for some of the required application information and allowed contractors enthused at the opportunity to receive federal funding to apply on behalf of unknowing school districts, some of which eventually withdraw from the program,” the report states. “The EPA failed to account for the considerable electric infrastructure upgrades that electrifying a school bus fleet could require, potentially leading to delays for schools in utilizing their new buses.”

The White House did not immediately respond to a request for comment.

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