August 20, 2022 • 23 hours ago • 5 minutes read • 38 comments File photo of Janet Annesley in Calgary on August 12, 2010. Photo by Ted Rhodes/Postmedia

Content of the article

European natural gas prices hit record highs this week and the continent’s countries are preparing to cut gas use during the fall and winter.

This ad hasn’t loaded yet, but your article continues below.

Content of the article

As Russia’s incursion into Ukraine continues, the country’s energy giant Gazprom said on Friday that product would not flow through the Nord Stream 1 pipeline for three days later this month due to maintenance, pushing prices even higher. That’s the tumultuous scene as German Chancellor Olaf Scholz comes to Canada and sits down with Prime Minister Justin Trudeau next week. It is expected that the issue of energy security will be high on the menu for discussions. Is Canada willing to put its entire buffet of energy options on the table, including not just hydrogen—a deal will be signed on that front—but also natural gas and the development of an LNG industry needed to export it overseas? This is an important question.

Advertising 3

This ad hasn’t loaded yet, but your article continues below.

Content of the article

A new report by the Public Policy Forum argues that it’s time for this country to stop agonizing over LNG and instead embrace the fact that Canada has abundant supplies of low-cost natural gas that could displace the world’s highest-emitting energy sources . “Canadians have important decisions to make. We develop our gas and make it available to our global partners,” the report asks. “At the heart of the matter is a surprising paradox: while developing Canadian gas would put upward pressure on our own national climate goals, it could also help reduce global emissions. “It’s essentially a moral choice to be a good neighbor to our friends abroad while protecting our energy independence at home.”

Advertising 4

This ad hasn’t loaded yet, but your article continues below.

Content of the article

There are sound economic reasons why it makes sense for Canada to export supercooled liquefied natural gas to the world. As demand for energy and the push for electrification increases, natural gas will be needed — and Western Canada contains vast reserves that can be produced at low cost. Doing so will create jobs and attract investment, create property opportunities for indigenous communities and boost government revenues. Canada can supply low-carbon gas that will disrupt coal use in Asia and Europe, although it will take many years to build the necessary infrastructure. If the country develops a national industry with export facilities on both the east and west coasts, it could eventually ship LNG to customers in Asia and Europe.

Advertising 5

This ad hasn’t loaded yet, but your article continues below.

Content of the article

“The world needs more natural gas and Canada has the cleanest methane in the world so the most logical way is for Canada to increase its natural gas production, to send it via LNG to Asia,” said Mike Rose, CEO of Tourmaline Oil Corp. the country’s largest natural gas producer, he said in a recent interview. It’s an argument industry and provincial leaders have made for years, though it hasn’t resonated with federal decision-makers, who seem uneasy with the idea. “Prior to the invasion of Ukraine, Canada was alone among natural gas-producing countries in showing ambivalence about developing its resources for export,” the report notes. Canada has more than 200 years of reserves at current production levels and is the fifth largest natural gas producer in the world. Although 18 separate LNG projects have been proposed for the Pacific and Atlantic coasts over the past decade, only one major project and a smaller development are moving forward today.

This ad hasn’t loaded yet, but your article continues below.

Content of the article

Opponents argue that the new projects will lock in long-term investments in fossil fuel infrastructure (such as the pipelines needed to transport natural gas to export facilities) and exacerbate the climate crisis. A report by the International Institute for Sustainable Development (IISD) said Canada does not have LNG export facilities ready to help Europe and that it will take three years or more for new projects to become operational. He pointed out that European countries are already accelerating plans to develop more renewable energy projects. “There will be a market for natural gas, but it will shrink,” added Keith Stewart of Greenpeace Canada. “We’re seeing it with the Germans coming to town and saying, ‘We really want your green hydrogen and ammonia, but we’re less interested in LNG.’

Advertising 7

This ad hasn’t loaded yet, but your article continues below.

Content of the article

In Canada, LNG expert Geoffrey Cann believes it will take at least seven years to build a major export project and even longer to pass environmental and regulatory reviews. However, Asian countries will need more natural gas for decades to come as they move away from burning coal to generate electricity. “This is a marathon,” said Cann, director at MadCann Alberta. “The demand seems to be very, very strong, but the opposition is just as strong.” Notably, Canada, one of the world’s largest oil and gas producers, has already adopted a national carbon price, is committed to reaching net zero emissions, and is committed to reducing industry methane emissions by 75 percent by in 2030. Officials in the office of federal Natural Resources Minister Jonathan Wilkinson said Friday that meetings with German leaders next week will include discussions on hydrogen and critical minerals. The LNG issue will not be ignored, but it will not be the focus of the discussions.

This ad hasn’t loaded yet, but your article continues below.

Content of the article

“On the East Coast, the big opportunity is hydrogen,” Wilkinson told Reuters. “The economics of West Coast LNG will almost certainly be better than East Coast LNG, given how far the transmission requirements are.” Any companies eyeing decades of investment in LNG projects should know there is a future for natural gas production in Canada — but also have a clear sense that governments will support such ventures. Janet Annesley, who contributed to the Public Policy Forum report and was chief of staff to former Liberal resources minister Jim Carr, pointed out that Canada has implemented climate policies and industry has committed to reducing emissions. But Canada needs to be clear about how it sees the opportunity to export natural gas and how the country can produce the world’s cleanest LNG, said Annesley, chief sustainability officer at Kiwetinohk Energy Corp. “We don’t have a clear vision,” he said. “We have to realize that we can walk and chew gum at the same time. We can be a natural gas producer and a leader in tackling climate change. We can be (both) these things at the same time.” Chris Varcoe is a columnist for the Calgary Herald. [email protected]

Share this article on your social network

This ad hasn’t loaded yet, but your article continues below.

Sign up to receive daily news headlines from the Calgary Herald, a division of Postmedia Network Inc. By clicking the subscribe button you consent to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Thanks for subscribing!

A welcome email is on its way. If you don’t see it, check your spam folder. The next issue of the Calgary Herald Headline News will be in your inbox soon. We encountered a problem with your registration. PLEASE try again

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourages all readers to share their views on our articles.  Comments may take up to an hour for moderation before appearing on the site.  We ask that you keep your comments relevant and respectful.  We’ve enabled email notifications—you’ll now receive an email if you get a reply to your comment, there’s an update on a comment thread you’re following, or if someone follows the comments.  Visit the Community Guidelines for more information and details on how to customize your email settings.