With the new tax incentives put in place by the British Columbian government, LNG projects are now beginning to show signs of strong growth and development. As stated by Mr Keane in the Vancouver Sun, "B.C. has a chance to build an entirely new industry that can benefit the province, the country and the world".
Taking place next month, 14-16 May in Vancouver, the Canada Gas and LNG Exhibition and Conference will be looking further into the dynamic Canada market. Gastech Insights spoke with keynote speaker at the event and President & CEO of the B.C. LNG Alliance to hear his views on future advancements and key market opportunities.
Gastech Insights: With 17 proposed LNG projects in the British Columbia region, what advances do you expect to see in 2018?
David Keane: Our members, LNG Canada and Woodfibre LNG, have indicated they will look at final investment decisions from their project partners in 2018. The BC LNG Alliance represents the seven leading LNG projects in B.C. and all of our member companies continue to invest in their B.C. projects. The fundamentals are still strong for an LNG industry in B.C., we have a world-class supply of natural gas, stable and supportive governments, close proximity to Asian markets and strong regulations for natural gas development and shipping.
In terms of global markets, the consensus is that what was a glut of LNG on the market is now turning into a significant supply gap that will see a shortage of LNG to meet the rapidly growing demand by the mid-2020s. To meet that window, assuming four to five years for construction for an LNG facility, companies will be looking to take final investment decisions between 2018 and the early 2020s.
Gastech Insights: Natural gas has the power to reduce carbon emissions globally. How can the Canadian industry successfully promote the environmental benefits of LNG?
David Keane: Climate change is a global issue that will require global solutions. While countries have borders, emissions do not. Displacing coal consumption in Asia is key to helping the world reduce global greenhouse gas emissions and air pollution. B.C.’s LNG industry will be producing LNG with fewer emissions compared to other LNG-producing jurisdictions. B.C.’s proposed LNG facilities will have about 50% fewer greenhouse-gas emissions than the average of all LNG facilities operating around the world today, making B.C.’s facilities the lowest-emitting in the world.
Global demand for LNG is predicted to increase 20% by 2030 and 45% by 2040 as other countries that currently use coal to produce heat and electricity look to meet their climate targets by switching to a cleaner source of energy. We encourage British Columbians and Canadians to see our opportunity to have a maximum impact on reducing global greenhouse gas emissions as helping to meet that demand with the world’s cleanest LNG produced with the fewest emissions.
Gastech Insights: What is required for the domestic LNG market opportunities in Canada to grow?
David Keane: LNG is a commodity and is priced accordingly. In order for our LNG to be competitive and find a place on the global market, it cannot face additional costs that other jurisdictions do not. LNG buyers may like everything about LNG from B.C.; our abundant natural gas resources, stable governments, proximity to major markets and our environmentally responsible production, however, they are not willing to pay more for LNG from B.C. We need to foster an industry in B.C. that can produce LNG for the same price as competing jurisdictions and that includes a competitive and stable fiscal framework from government.
Importantly, the government of British Columbia has recognized the competitive challenges faced by B.C.’s LNG industry and have announced very positive and encouraging fiscal changes that will help our LNG industry be more cost competitive.
Gastech Insights: Why should industry players attend the Canada Gas & LNG Exhibition and Conference in May?
David Keane: Much has changed in the global LNG industry in the past 12-18 months. It’s important to hear directly from proponents and industry experts about what is actually happening locally and how they are responding to market changes and challenges.
David Keane will be giving a keynote address on "Why Canada needs Canadian LNG" at the upcoming Canada Gas and LNG Exhibition and Conference, taking place 14-16 May in Vancouver. Do not miss out on incredible industry insights and book your place today.
Image courtesy of BC LNG Alliance
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