Commentary
Twice in the last year, international leaders have approached Canada cap-in-hand, seeking to purchase liquefied natural gas (LNG).
German Chancellor Olaf Scholz Prime Minister Trudeau met with Prime Minister Justin Trudeau last August, and Japanese Prime Minister Fumio Kishida visited Ottawa on January 12. their country. When asked about his LNG supply to those countries, Trudeau dodged the question and talked about exporting hydrogen and batteries.
The Canadian government is ideologically obsessed with making Canada a net zero emission country. This near obsession with reducing emissions has blinded them to economic realities both at home and abroad. Blessed with abundant natural gas deposits and coastal access on both sides of the country, Canada could become a world energy powerhouse to consider if the government can find the will to allow it.
The liberal government has taken a strong stance against Russia’s invasion of Ukraine.To that end, Canada has pledged to spend $3.4 billion with the help of Ukraine. Much of that assistance comes in the form of military hardware and training. Ukraine certainly appreciates its help, but is it really the most effective way Canada can contribute to ending the conflict? Military support often leads to more military action.
A large part of the reason the countries opposing Russia’s actions in Ukraine have been unable to effectively influence or dissuade Russia is their dependence on Russia’s natural gas supplies. be. The state can condemn Putin’s actions, but it must always be borne in mind that if it goes too far, gas supplies may be cut off.
If the Trudeau government really wants to put a wrench on Vladimir Putin’s agenda, they will be rushing to build LNG export terminals while providing LNG supplies to European and Asian countries. War is costly and Putin is already facing pressure at home over resources being spent on the conflict in Ukraine. If Russia starts to lose some of its energy export customer base, you can rest assured that it will get Putin’s attention more effectively than military aid directed at Ukraine.
Canada does not have as vast gas reserves as Russia, 4th largest producer of natural gas on earth. Canada has the production infrastructure, skilled workforce and resources. We just need to get to work building export capacity, and that means the federal government must stop impeding development.
There were 18 quite a few, Proposed LNG export Project in Canada. 13 on the West Coast, 2 in Quebec and 2 in Nova Scotia. Only his one of these projects is under construction.Located in Kitimat, British Columbia, always delayed by regulatory hurdles and protests to prevent construction Feed it in the pipeline. None of the east coast projects are off the ground due to a lack of pipelines, and the Quebec government has closed his LNG operations there. federal blessingAll other projects are in development as investors flee the Canadian regulatory environment.
There is a business case for LNG exports from Canada, and investors will be willing to fund the necessary infrastructure if they are confident the federal government will stop obstructing it. But now, with so many pipeline cancellations and blockages to petrochemical development in Canada, it’s not a safe place to invest.
LNG infrastructure can be built very quickly if the government encourages it. Germany built her LNG terminal in less than a year, and she has five more terminals under construction. They have already received shipments of LNG from the US and Qatar. It’s possible that Canadian gas was out there.
Governments are holding back when it comes to energy exports because they don’t want to look like they’re taking a back seat to emissions reduction targets.
Perhaps the Russian situation could give Ottawa a sense of pragmatism and offer a way to save face while supporting LNG exports. Liberals can argue that there are exceptional circumstances and a humanitarian need to develop LNG export capacity.
Canada can win on multiple fronts by taking the LNG export game seriously. We can create thousands of high-paying jobs and bring in much-needed tax revenue while developing ethically produced resources. Exports will ease the energy crisis abroad, reduce dependence on Russia for energy sources, and allow some countries to reduce or eliminate the burning of coal for energy.
It may win, win, win. If only the government could remove its ideological blindfold long enough to make it happen.
Views expressed in this article are those of the author and do not necessarily reflect those of The Epoch Times.
Cory Morgan is a Calgary-based columnist.