From job creation and First Nations partnerships to the key geographic advantage of two coasts and the drive to capture premium pricing, LNG stands out as a major opportunity for Canada. Record-breaking regasification expansions and carrier orders globally illustrate that investors see LNG as a long-term bet. By developing its own complete “well-to-customer” LNG value chain, Canada can boost its economy, earn fair value for its natural resources, and fortify its standing among the world’s top energy-exporting nations.
1. Solid, Long-Term LNG Demand
- Major Forecasts:
- IEA (World Energy Outlook 2022): Projects global natural gas (including LNG) demand to remain significant through at least the 2030s.
- Canada Energy Regulator (Energy Futures): Highlights Asia’s growing appetite for LNG, suggesting Canada can capture new market share.
- U.S. EIA (International Energy Outlook): Foresees a continued rise in LNG trade despite energy transition efforts, underscoring natural gas’s enduring role.
2. Massive Job Creation
- Range of Roles: Construction, trades, operations, logistics, engineering, and management.
- Resource Works estimates: BC LNG projects alone could generate tens of thousands of direct and indirect jobs.
- Ongoing Operations: Facilities typically run for decades, supporting long-term employment.
3. Reliable, Long-Term Revenue
- Public Finances: Corporate taxes, royalties, and income taxes at all levels of government.
- Stability: LNG terminals operate for 20+ years, providing predictable revenue streams.
4. First Nations Partnerships
- Shared Prosperity: Equity stakes, revenue sharing, training programs.
- Community Development: Economic autonomy and long-term growth opportunities.
5. Proof of “Smart Money”: Regasification & Carrier Fleet
- Regasification: Global capacity reached 1,010 MTPA in 2022 (GIIGNL).
- New Projects: 20+ terminals under construction or near FID, adding 100+ MTPA by 2026.
- Carrier Fleet: Over 700 active LNG vessels; 182 new ships ordered in 2022, with 300+ under construction.
Key Insight: Massive investments signal strong investor confidence in LNG’s long-term future.
6. Two-Coast Geographic Advantage
- West Coast: 8–10 days to Asia (vs. 20+ from U.S. Gulf, 14+ from Middle East).
- East Coast: 6–8 days to Europe.
- Strategic Edge: Faster routes mean lower costs, less boil-off, more competitive pricing. Only Russia rivals Canada’s dual-coast access.
7. Market Preference for Reliability
- Buyer Priorities: Stability and security of supply.
- Canada’s USP: Political stability, regulatory integrity, and geographic advantage.
8. Ample Natural Gas Reserves & Tech Efficiency
- Top-Tier Holdings: Major reserves in Western Canada.
- Efficiency: Technological advancements in extraction and pipeline operations.
9. Rigorous Regulatory Environment
- High Standards: World-class environmental and project oversight.
- Social License: Mandatory consultation builds local support and reduces project risk.
10. Diversification & Economic Resilience
- Spillover Effects: Benefits to engineering, marine services, tech R&D, logistics.
- Economic Stability: Adds strength alongside oil, minerals, and forestry exports.
11. Technological & Engineering Leadership
- Innovation: Advanced liquefaction, leak detection, and terminal designs.
- Global Competitiveness: Competing with Qatar, Australia, U.S. drives innovation.
12. Community & Infrastructure Development
- Local Upgrades: Roads, ports, broadband, and utilities.
- Workforce Training: Skilled trades development and certification programs.
13. Lessons from Other LNG Heavyweights
- Qatar: Top global LNG exporter; massive national wealth.
- Australia: Rapid build-out, job creation, and GDP growth.
- U.S.: From LNG importer to exporter in under a decade.
- Common Denominator: All continue to expand LNG infrastructure.
14. Price Disadvantage of Selling Only to the U.S.
- Market Control: U.S. buyers set the price for Canadian gas—far below global LNG value.
- Lost Value: Americans convert Canadian gas to LNG and capture the premium.
- Made-in-Canada Solution: Building our own LNG infrastructure keeps value here.
15. Large Projects’ Impact on GDP: Trans Mountain Comparison
- Proven Effect: TMX completion brought immediate GDP uplift.
- Next in Line: LNG Canada’s first export cargo—expected within weeks—will repeat the boost.
16. Navigating Commodity Cycles
- Volatility is Normal: Price swings are part of energy markets.
- The Trend is Clear: Long-term forecasts still strongly favour LNG demand.
17. Platform for Future Energies
- Carbon Capture & Hydrogen: Existing LNG infrastructure can pivot.
- Future-Proofing: Pipelines and ports can support Canada’s evolving energy mix.
