Canada can become an LNG powerhouse, but it will take innovation and determination
Standing on the jetty last week, watching the first cargo leave, I was reminded that LNG Canada was barely a year into construction when suddenly faced with an unprecedented global pandemic that stretched supply chains, impacted workers and tested capacities. LNG Canada and its valued contractors persevered as a team, and got the job done as a team, safely.
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Let's be clear: Whatever challenges we have faced or may face in the future, we should not forget the natural advantages we enjoy here in Canada.
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Designed to produce 14 million tonnes per annum (mtpa) in its initial phase, LNG Canada benefits greatly from our access to abundant, low-cost natural gas from British Columbia's vast resources; a cool northern climate that optimizes production; a deep water harbour that is ice-free all year; and a shipping distance to markets in Asia that is 50 per cent shorter than from the U.S. Gulf of Mexico and avoids the Panama Canal. Add to this a highly skilled and growing workforce, and an innovative plant design that incorporates aero-derivative gas turbines and receives auxiliary electric power from BC Hydro, and we have a recipe for success.
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Our day has arrived, and in many respects, the timing could not be better. The world is hungry for reliable supplies of high quality, responsibly-produced lower carbon energy. Countries around the world want to decarbonize their economies, and they are looking to LNG to help them in their transition. Canada is a respected and stable exporting nation, a good trading partner and a strong alternative to countries with less predictable leadership.
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From a Canadian perspective, our nascent LNG industry adds much needed diversity to our export markets. We are also demonstrating — again at a time when it's really needed — that British Columbians and Canadians are capable of building big things. And we're capable of doing even more, with more LNG projects in B.C. on the way, and with LNG Canada's Phase 2 expansion that's now under consideration.
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We see an opportunity to build on our early Phase 1 successes and the benefits it's already providing First Nations, communities, British Columbians and Canadians. Phase 2 would potentially double our production capacity to 28 mtpa, making LNG Canada one of the world's largest LNG export facilities by volume. A final investment decision will take into account factors such as overall competitiveness, affordability, pace, future greenhouse gas emissions and stakeholder needs. Our goal is to continue to design, build and operate a world-class facility at scale.
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