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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Maple Ridge City Hall. (The News files)
Maple Ridge takes development services virtual

Building, planning and engineering services will be offered online only until end of the month

Thousands have converged in Whonnock Lake Park to enjoy the nice weather. (Roxanne Hooper/The News)
Thousands enjoy Maple Ridge park as city warns about social distancing

Portable toilets installed in anticipation of nice weather

COVID-19. (Image courtesy CDC)
Two new Maple Ridge schools have COVID-19 exposures

Alouette elementary and Maple Ridge secondary visited by virus

Ridge Meadows RCMP Const. Britteny George and Westview students turned old tires into pet beds. (Special to The News)
Maple Ridge students help turn old tires into pet beds

Westview art classes and RCMP constable take on project

Maple Ridge-Pitt Meadows Conservative MP Marc Dalton and former MP and Liberal candidate Dan Ruimy.
Dalton slams budget, Ruimy defends Liberal spending

Neither politician sees federal budget triggering an election

A lone traveler enters the Calgary Airport in Calgary, Alta., Monday, Feb. 22, 2021. THE CANADIAN PRESS/Jeff McIntosh
VIDEO: Trudeau defends Canada’s travel restrictions as effective but open to doing more

Trudeau said quarantine hotels for international air travellers will continue until at least May 21

In this image from video, former Minneapolis police Officer Derek Chauvin, center, is taken into custody as his attorney, Eric Nelson, left, looks on, after the verdicts were read at Chauvin’s trial for the 2020 death of George Floyd, Tuesday, April 20, 2021, at the Hennepin County Courthouse in Minneapolis, Minn. THE CANADIAN PRESS/Court TV via AP, Pool
George Floyd’s death was ‘wake-up call’ about systemic racism: Trudeau

Derek Chauvin was found guilty Tuesday on all three charges against him

Former University of Victoria rowing coach Barney Williams is photographed in the stands during the Greater Victoria Invitational at CARSA Performance Gym at the University of Victoria in Victoria, B.C., on Friday, November 29, 2019. THE CANADIAN PRESS/Chad Hipolito
Rowing Canada sanctions former head coach of B.C. varsity women’s team

Suspension of Barney Williams would be reversed if he complies with certain terms

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A man pauses at a coffin after carrying it during a memorial march to remember victims of overdose deaths in Vancouver. THE CANADIAN PRESS/Darryl Dyck
B.C. announces historic half-billion-dollar funding for overdose crisis, mental health

Of it, $152 million will be used to address the opioid crisis and see the creation of 195 new substance use treatment beds

Children’s backpacks and shoes are seen at a CEFA (Core Education and Fine Arts) Early Learning daycare franchise, in Langley, B.C., on Tuesday May 29, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C. budget to expand $10-a-day child care, but misses the mark on ‘truly universal’ system

$111 million will be used to fund 3,750 new $10-a-day spaces though 75 additional ChildCareBC universal prototype sites over the next three years.

John Wekking, Merritt Road Report - Facebook
 Coquihalla Road Report
Wildfire sparks off Coquihalla in Merritt

The wildfire is located near the Dollarama off of Highway 5

Most Read