LNG – A Feasible Next Step in Canada’s Clean Energy Transition

Climate debates in Canada are heating up. A recent poll showed that a majority of Canadians say that climate change is their number one concern, and rightfully so. Rising global temperatures will lead to a variety of harmful changes at the global scale, including more frequent and intense weather events, species and habitat loss, mass migration, and other disconcerting changes. The International Panel on Climate Change special report indicates that global emissions must fall by 45% from 2010 levels by 2030 to prevent global temperatures from rising more than 1.5℃. Optimistic projections based on current policies have our emissions actually increasing by 14%, largely due to population growth and industrialization of developing economies . Therefore, more ambitious action on climate change is necessary to meet our emissions goals.

While ambitious action on climate change is easy to demand in writing, emissions reductions strategies often require large structural changes in energy producing economies. Attempts to balance economic growth and emissions reductions can delay coordinated action on climate change, especially in energy producing provinces like Alberta. Good business strategy and government policy is required to balance economic growth and emissions reductions. That’s where LNG comes in.

Liquified natural gas (LNG) allows the transportation of natural gas in liquid state by cooling it to -162℃. The technology enables transportation of 600 times more natural gas by volume than in its gaseous state. When used to generate electricity, natural gas emits 40% fewer emissions than coal. Furthermore, by supplementing LNG with carbon capture and storage (CCS) – a technology that removes carbon from the air and stores it in the ground -  we can further reduce the emissions of natural gas fired electricity generation.

By exporting LNG to mediate coal-to-gas conversion in Asia, India, and other carbon intensive regions, we can reduce global emissions and maintain employment for Albertan energy workers. Premier Jason Kenney adamantly supports LNG exports, calling it the “single biggest thing [Alberta] can do to lower greenhouse gas emissions”. While there is some merit to that statement, it is unrealistic to expect LNG exports to unilaterally address climate change in the long term.

Renewable energy growth will be an integral part of transitioning to a cleaner, greener economy. As wind, solar, and biothermal continue to become cheaper, we can expect investment to grow as well. However, while deployment of renewable energy gradually rolls out, we need solutions to meet global energy demand now. LNG provides the Alberta oil and gas industry a feasible step to transition towards cleaner energy. Growing Alberta’s LNG exports enables the province to maintain employment, meet increasing global energy demand, and lower global emissions via coal-to-gas conversion.

While you may think the debate on LNG stops here, it does not.

Some residents of British Columbia, environmental groups like the Sierra Club, as well as the BC Green party are strongly opposed to LNG developments. Despite LNGs ability to lower global GHG emissions, two projects from LNG Canada and Woodfibre LNG would actually increase the provinces domestic emissions and prevent BC from meeting their climate targets. Unless Canada is eligible to earn international emissions reductions credits under article 6 of the Paris Accord, BC will be resistant to LNG projects that increase their emissions. Bilateral cooperation between Canada and LNG importing countries could ensure both parties receive partial credit for their LNG mediated emissions reductions; consequently, domestic opposition to LNG projects could be lessened as BC would get credit for allowing LNG projects to be built on their coastlines.

Reducing domestic opposition to LNG may not be possible without international agreements, but that doesn’t mean LNG projects should be scrapped if agreements aren’t made. LNG may increase BC’s emissions, but it would also reduce global emissions, and after all, isn’t that the point?

Global problems require global solutions, and LNG is a feasible global solution that enables Alberta to transition towards cleaner energy.