Question Period Note: Liquefied Natural Gas

Canada has a critical opportunity to develop its liquefied natural gas (LNG) industry to directly access world markets for gas exports, to finance its transition to a low carbon economy, to advance reconciliation with Indigenous Peoples, and to support global action on climate change by displacing higher emitting fuels – including LNG from other producers. Challenges from fossil fuel project opponents, uncertainty over the outcomes of regulatory review processes, and shifting market conditions pose risks to potential investments worth billions of dollars and tens of thousands of jobs in Canada, despite proponents’ efforts across 11 proposed projects to develop an LNG industry that would be the lowest emitting in the world.

• Canadian liquefied natural gas (LNG) is an emerging industry that holds the potential to displace higher emitting fuels in Canada and abroad – including LNG from other countries – to reduce global GHG emissions and build a cleaner future.
• We are working to ensure that Canada becomes the world’s cleanest producer of LNG, and will continue to work with industry, provincial and territorial governments, and Indigenous communities to ensure its long-term competitiveness.
• Canada is building a stable, competitive and sustainable LNG sector to be a world leader in environmental, social and governance (ESG) performance, in alignment with our pursuit of a net-zero emissions economy by 2050.
• The Government cannot achieve its target of net-zero emissions by 2050 without the efforts of the energy sector and its talented workers.
• Canada is well-positioned to produce and supply LNG to global markets, with the $40 billion LNG Canada project under construction, three projects approved to proceed, three under review, and several others in the planning stage.
• Our government is confident that LNG presents tremendous economic opportunity that will create jobs for local communities, Indigenous partners, and Canadians across the country, while also helping the world transition to a low-carbon future.
• Given that LNG projects take years to build, in addition to time for regulatory approvals, we are taking action now to position competitive projects for operation by late decade.

If pressed:
• Our government supports the development of a competitive and sustainable LNG industry, which is a key feature of multiple provinces’ economic strategies, most notably for Alberta, as our most significant gas producer.
• LNG will provide domestic governments with billions of dollars in annual revenues from taxes and royalties to support other investments across the country, and will support Indigenous economic self-determination and reconciliation objectives.

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