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A new Fraser Institute report says exporting Canadian LNG to replace coal-fired power production in India, China could reduce CO2 emissions by over 630 megatonnes
FortisBC Tilbury LNG Facility in Delta, B.C. is pictured on Oct. 11, 2018. Photo by Jason Payne /Postmedia Network
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OTTAWA — While Liberal energy policy has largely consisted of leaving Canada’s energy resources in the ground, a new study suggests doubling our natural gas production could almost entirely offset Canada’s yearly carbon dioxide emissions.
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While this flies in the face of what has become the government’s environmental catechism, the new Fraser Institute study says leveraging Canadian liquefied natural gas (LNG) exports to supplant coal-fired power generation in China and India could reduce global emissions by up to 630 million tonnes— a figure that’s just under what Canada emits annually.
“Coal remains a dominant energy source in many parts of the world and a major contributor to greenhouse gas emissions,” said Elmira Aliakbari, study co-author and the institute’s director of natural resource studies.
As of 2023, coal accounted for around 56% of India’s total energy generation, and 54% in China.
Aliakbari said coal produces nearly twice the amount of pollutants as LNG.
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“So as the world looks for practical ways to cut emissions, Canada’s natural gas, especially in its liquid form or LNG, can make a real difference,” she said.
“Our study found that if Canada doubled its existing natural gas production and exported the additional supply to Asia in the form of LNG to replace coal in the power sector, global emissions could drop by up to 630 million tons a year.”
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That’s the same as taking 137 million cars off the road, Aliakbari said.
While Canada ranks 12th in world CO2 emissions, what we produce doesn’t come close to China — which emits about as much CO2 as the top nine nations combined.
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Canada’s cooler climate means we can process and liquefy natural gas easier and cheaper than other producers, Aliakbari said.
Coupled with Canada being geographically closer to China and India, it makes sense for Canada to increase its LNG exports.
And the world wants our gas — as evidenced by the nations that have requested, and refused, access to Canadian LNG by the Justin Trudeau Liberals.
“Following the invasion of Ukraine by Russia, so many European leaders came basically to Canada looking for a new supplier of LNG,” Aliakbari said. “They recognized us as a reliable and safe supplier.”
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While LNG Canada’s Phase 1 project in Kitimat, B.C. is expected to start shipping gas later this year, Canada’s production and export infrastructure needs a serious boost before our potential can be realized.
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“Over the past few years, we see that several LNG projects in the country have either been canceled or delayed, in part due to onerous regulations,” Aliakbari said, pointing to provincial and federal policies hindering development, including Ottawa’s Impact Assessment Act and federal emissions caps.
“Our approach in Canada in terms of climate policy has been focused on reducing domestic greenhouse gas emissions by implementing policies like net zero — policies that would slow down our economy,” she explained. “But it’s important to recognize that emissions are a global problem.”
bpassifiume@postmedia.com
X: @bryanpassifiume
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