Why Canada is on the brink of LNG-driven prosperity

Press Release

April 24, 2025

Here are the top reasons why liquefied natural gas (LNG) represents a solid and desirable social and economic development opportunity for Canada.

From job creation and First Nations partnerships to the key geographic advantage of two coasts and the drive to capture premium pricing, LNG stands out as a major opportunity for Canada. Record-breaking regasification expansions and carrier orders globally illustrate that investors see LNG as a long-term bet. By developing its own complete “well-to-customer” LNG value chain, Canada can boost its economy, earn fair value for its natural resources, and fortify its standing among the world’s top energy-exporting nations.

1. Solid, Long-Term LNG Demand

• • Major Forecasts:
    • IEA (World Energy Outlook 2022): Projects global natural gas (including LNG) demand to remain significant through at least the 2030s.
    • Canada Energy Regulator (Energy Futures): Highlights Asia’s growing appetite for LNG, suggesting Canada can capture new market share.
    • U.S. EIA (International Energy Outlook): Foresees a continued rise in LNG trade despite energy transition efforts, underscoring natural gas’s enduring role.

2. Massive Job Creation

• • Range of Roles: Construction, trades, operations, logistics, engineering, and management.
  • Resource Works estimates: BC LNG projects alone could generate tens of thousands of direct and indirect jobs.
  • Ongoing Operations: Facilities typically run for decades, supporting long-term employment.

3. Reliable, Long-Term Revenue

• • Public Finances: Corporate taxes, royalties, and income taxes at all levels of government.
  • Stability: LNG terminals operate for 20+ years, providing predictable revenue streams.

4. First Nations Partnerships

• • Shared Prosperity: Equity stakes, revenue sharing, training programs.
  • Community Development: Economic autonomy and long-term growth opportunities.

5. Proof of “Smart Money”: Regasification & Carrier Fleet

• • Regasification: Global capacity reached 1,010 MTPA in 2022 (GIIGNL).
  • New Projects: 20+ terminals under construction or near FID, adding 100+ MTPA by 2026.
  • Carrier Fleet: Over 700 active LNG vessels; 182 new ships ordered in 2022, with 300+ under construction.

Key Insight: Massive investments signal strong investor confidence in LNG’s long-term future

6. Two-Coast Geographic Advantage

• • West Coast: 8–10 days to Asia (vs. 20+ from U.S. Gulf, 14+ from Middle East).
  • East Coast: 6–8 days to Europe.
  • Strategic Edge: Faster routes mean lower costs, less boil-off, more competitive pricing. Only Russia rivals Canada’s dual-coast access.

7. Market Preference for Reliability

• • Buyer Priorities: Stability and security of supply.
  • Canada’s USP: Political stability, regulatory integrity, and geographic advantage.

8. Ample Natural Gas Reserves & Tech Efficiency

• • Top-Tier Holdings: Major reserves in Western Canada.
  • Efficiency: Technological advancements in extraction and pipeline operations.

9. Rigorous Regulatory Environment

• • High Standards: World-class environmental and project oversight.
  • Social License: Mandatory consultation builds local support and reduces project risk.

10. Diversification & Economic Resilience

• • Spillover Effects: Benefits to engineering, marine services, tech R&D, logistics.
  • Economic Stability: Adds strength alongside oil, minerals, and forestry exports.

11. Technological & Engineering Leadership

• • Innovation: Advanced liquefaction, leak detection, and terminal designs.
  • Global Competitiveness: Competing with Qatar, Australia, U.S. drives innovation.

12. Community & Infrastructure Development

• • Local Upgrades: Roads, ports, broadband, and utilities.
  • Workforce Training: Skilled trades development and certification programs.

13. Lessons from Other LNG Heavyweights

• • Qatar: Top global LNG exporter; massive national wealth.
  • Australia: Rapid build-out, job creation, and GDP growth.
  • U.S.: From LNG importer to exporter in under a decade.
  • Common Denominator: All continue to expand LNG infrastructure.

14. Price Disadvantage of Selling Only to the U.S.

• • Market Control: U.S. buyers set the price for Canadian gas—far below global LNG value.
  • Lost Value: Americans convert Canadian gas to LNG and capture the premium.
  • Made-in-Canada Solution: Building our own LNG infrastructure keeps value here.

15. Large Projects’ Impact on GDP: Trans Mountain Comparison

• • Proven Effect: TMX completion brought immediate GDP uplift.
  • Next in Line: LNG Canada’s first export cargo—expected within weeks—will repeat the boost.

16. Navigating Commodity Cycles

• • Volatility is Normal: Price swings are part of energy markets.
  • The Trend is Clear: Long-term forecasts still strongly favour LNG demand.

17. Platform for Future Energies

• • Carbon Capture & Hydrogen: Existing LNG infrastructure can pivot.
  • Future-Proofing: Pipelines and ports can support Canada’s evolving energy mix.

IBF4