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

A sign encouraging COVID-19 safety steps, with the Bayside rugby clubhouse – located adjacent to Semiahmoo Secondary and the South Surrey track – in background; Jan. 6, 2021. (Photo: Tracy Holmes)
Surrey sees 2,400 new COVID-19 cases in February

This is the lowest monthly increase since last fall

A CVS pharmacist prepares a COVID-19 vaccine at Village Green Retirement Campus in Federal Way on Jan. 26. (Photo: Olivia Sullivan/Sound Publishing)
COVID-19 vaccination bookings start Monday for some Surrey seniors

First up is seniors aged 90-plus, and Indigenous seniors, elders aged 65-plus

Federal Conservative leader Erin O’Toole speaks during a virtual South Surrey & White Rock Chamber of Commerce town hall on Saturday, March 6, 2021.
O’Toole says South Surrey, White Rock face ‘acute’ challenges during pandemic

Federal Conservative leader speaks at local chamber town hall

Labour Minister Harry Bains addressing Surrey Board of Trade digital meeting Friday. (Screen shot)
Labour Minister says Surrey businesses’ resilience through pandemic ‘impressive’

‘Surrey’s effort in bending the curve has been among the best,’ Harry Bains says

Volunteers from Semiahmoo Secondary joined with members of the Lower Mainland Green Team and the White Rock and South Surrey Naturalists Wednesday to remove invasive plants from White Rock’s Ruth Johnson Park. (Contributed photo)
Students, volunteers remove invasive plants from White Rock’s Ruth Johnson Park

Day-long project a collaboration between city, Lower Mainland Green Team

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

The family of injured Willoughby resident Ronald Gerald Jesso is hoping someone saw something that will help solve the mystery of how he came to be so badly hurt on the morning of Feb. 22. Jesso is still in hospital. (Jesso family/Special to Langley Advance Times)
An appeal to help solve the mystery of an injured Langley man

Family of Ronald Gerald Jesso asks witnesses to come forward

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

B.C. RCMP Lower Mainland District officer, Asst. Commissioner Stephen Thatcher presents RCMP blankets to (from left) Chief James Hobart, Chief Maureen Chapman, Chief Derek Epp and Chief Mark Point. (RCMP)
Historic agreement significantly expands Indigenous role in Lower Mainland policing

Community Safety Agreement builds relationship of ‘trust, communication and prevention,’ says Chief

Most Read