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

Sgt. Darryl Peppler said Mounties are continuing their investigation after Tuesday’s raid. File photo
Grand Forks RCMP arrest suspected drug traffickers at city motel

Police say they netted “a sizable amount” of money and suspected drugs following Tuesday’s arrests.

Midway RCMP’s Cpl. Phil Peters spoke at Greenwood’s city council meeting Monday, Nov. 23. Photo: Laurie Tritschler
Police investigating burglary ‘ring’ with ties to Greenwood and Okanagan

Midway RCMP are looking at “persons of interest” in two Greenwood heists

The 29-year-old man pleaded guilty to one count of dangerous driving at Grand Forks Provincial Court Tuesday, Nov. 17. File photo
Grand Forks man gets 3-months curfew for role in Highway 3 chase

Guilty man thanked Judge Robert Brown, said he is committed to recovering from addiction

Two men got into a fight over a Grand Forks’ flower display last summer. One of the men resolved an assault charge by entering into a peace bond at Provincial Court Tuesday, Nov. 17. File photo
Grand Forks man takes peace bond after flower fisticuffs

Harsh words over a downtown flower display led to violent confrontation, said Crown attorney

A man wears a mask while walking down Canyon Street in Creston on Nov. 13. Photo: Aaron Hemens
Creston resident living with COVID-19 reflects on experience

Contracting and living with the virus, she said, has led to a “major reset” in her life

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

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

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Krista Macinnis displays the homework assignment that her Grade 6 daughter received on Tuesday. (Submitted photo)
B.C. mom angry that students asked to list positive stories about residential schools

Daughter’s Grade 6 class asked to write down 5 positive stories or facts

B.C. projects targeting the restoration of sockeye salmon stocks in the Fraser and Columbia Watersheds will share in $10.9 million of federal funding to protect species at risk. (Kenny Regan photo)
13 projects protecting B.C. aquatic species at risk receive $11 million in federal funding

Salmon and marine mammals expected to benefit from ecosystem-based approach

Barrels pictured outside Oliver winery, Quinta Ferreira, in May. (Phil McLachlan - Black Press Media)
B.C. Master of Wine reflects on industry’s teetering economic state

Pandemic, for some wine makers, has been a blessing in disguise. For others, not so much.

Most Read