LNG exports from the west coast of Canada have been heralded as economic salvation for the province of British Columbia.
Under a Climate Justice project led by Canadian Centre for Policy Alternatives, the report “A Clear Look at BC LNG” undertakes a reality check that reveals several major problems with this narrative, both in the stewardship of finite non-renewable resources by provincial and federal governments, and in the environmental implications of large-scale development.
The report reveals that Canada’s National Energy Board is failing in its job as it has approved 12 terminals with a total capacity of 251 trillion cubic feet of LNG exports over 20-25 years, but in order to reach that goal Canada would have to become a net importer of natural gas, simply to meet domestic needs. Currently, only 18 tcf is available for export according to NEB’s own modeling, the report shows.
According to BC Oil and Gas Commission BC’s raw gas reserves are at 42.3 tcf, with a total “marketable resource” of 442 tcf. The report stresses that the government’s estimate of 2,900 tcf of gas available for export is not a credible claim.
Were the BC government to realize its hoped-for export target, the scale-up in drilling and associated infrastructure required would be massive, and would fundamentally alter the landscape of northern BC and would largely increase land disturbance and water consumption in the development of upstream supply for LNG exports.
Report also highlights that companies entering the LNG industry in BC face considerable risks while the recent tax changes mean that British Columbians, the public owners of the resource, will not see peak revenue flows until these capital investments are paid off.
The report stresses the need for BC’s resources to be developed with a more balanced stewardship and not by liquidating them as quickly as possible.
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LNG World News Staff; Image: Canaport LNG