Project engineer Elise Chow-Stiefvater works on Coastal GasLink’s Kitimat site. (Coastal GasLink)

Project engineer Elise Chow-Stiefvater works on Coastal GasLink’s Kitimat site. (Coastal GasLink)

More B.C. LNG can help recovery from COVID-19, study says

Conference Board of Canada calls for incentives

Investment in liquefied natural gas could grow Canada’s economy by $11 billion a year between now and 2064, and B.C. and Alberta would benefit the most from competitive changes, the Conference Board of Canada says.

With LNG Canada and the Coastal GasLink pipeline underway to Kitimat, and a smaller facility proposed for Squamish, Canada and B.C. could benefit from further development to supply the growing demand from China, Japan, Taiwan, Thailand, India and South Korea, the board said in a new report.

While B.C. has natural advantages including shorter shipping distance and colder weather for the super-cooled LNG product, the international trade is highly competitive.

“The tax and fiscal environment, regulatory approval timelines and policy support can all be improved,” the report says. “When comparing the LNG investment landscape in B.C. to that of key competing regions (for example the U.S. Gulf of Mexico states), some of these challenges become highlighted. Accelerated regulatory approvals, municipal property tax breaks, enhanced capital cost allowances, existing pipeline supply infrastructure and existing LNG facilities with trained workforces elsewhere make attracting LNG investment to a fledgling B.C. industry challenging.”

As B.C. Premier John Horgan prepares to assemble a cabinet for a second term, his NDP majority means no longer needing B.C. Green Party support for policy changes. The Greens bitterly opposed Horgan’s moves to drop the LNG income tax imposed by the former B.C. Liberal government and make other changes that led to LNG Canada’s partners proceeding with the investment estimated at $40 billion over its lifetime.

That opposition was centred on the greenhouse gas impact, not only of gas-fired LNG production but of further development of B.C. and Alberta shale gas deposits. LNG Canada taps into the Montney shale formation, which extends from B.C.’s northeast into northwestern Alberta, and the Horn River formation to the northeast of that offers substantial further supply.

RELATED: B.C. job recovery continues, rural regions leading

RELATED: Runway improvements, helipad coming to Kitimat

Horgan adopted former B.C. premier Christy Clark’s argument that exporting LNG would displace coal as China, India and other Pacific Rim countries continue to develop. With no commitment to limit its emissions under the Paris climate agreement, China is continuing to expand its already huge coal power infrastructure, and building or planning more coal-fired power plants in Turkey, Vietnam, Indonesia, Bangladesh, Egypt and the Philippines.

The Conference Board projections are based on LNG Canada’s phase two expansion beginning in 2023, followed by an additional LNG plant in northwestern B.C. beginning in 2024 that would be fully electrified from the B.C. Hydro power grid. That plant would need construction of another pipeline.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politicslng canada

Just Posted

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

Aerial view of a wildfire at 16 Mile, 11 kilometres northwest of Cache Creek, that started on the afternoon of June 15. (Photo credit: BC Wildfire Service)
Wildfire at 16 Mile now being held

Wildfire started on the afternoon of June 15 at 16 Mile, east of Highway 97

The Desert Daze Music Festival is doggone good fun, as shown in this photo from the 2019 festival, and it will be back in Spences Bridge this September. (Photo credit: Barbara Roden)
‘Best Little Fest in the West’ returning to Spences Bridge

Belated 10th anniversary Desert Daze festival going ahead with music, vendors, workshops, and more

Internet speed graphic, no date. Photo credit: Pixabay
Study asks for public input to show actual internet speeds in B.C. communities

Federal maps showing Internet speeds might be inflated, so communities lose out on faster Internet

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

Surrey Mayor Doug McCallum speaks at a press conference in August 2019 about provincial government approval of the city’s change to a municipal force, joined by councillors (from left) Mandeep Nagra, Allison Patton and Doug Elford. Members of the National Police Federation claim there is still no transition plan in place although Surrey RCMP’s contract with the city is due to end March 31.(File photo)
Elections BC approves petition application for referendum on Surrey policing transition

Application was filed under Recall and Initiative Act by the widow of a Surrey murder victim

Fiery crash on the Okanagan Connector between two semis. (Facebook)
One dead after fiery Okanagan Connector crash between two semis

DriveBC estimates road won’t be open until 5 p.m.

Queen’s counsel Paul Doroshenko, a Vancouver lawyer, has been suspended from practice for two months after admitting that his firm mismanaged $44,353.19 in client trust funds. (Acumen Law)
High-profile B.C. lawyer suspended over $44K in mismanaged client trust funds

Queen’s counsel Paul Doroshenko admits he failed to supervise his staff and find or report the shortages

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

Athena and Venus, ready to ride. (Zoe Ducklow - Sooke News Mirror)
Goggling double-dog motorcycle sidecar brings smiles to B.C. commuters

Athena and Venus are all teeth and smiles from their Harley-Davidson sidecar

Most Read