BC Natural Gas
B.C.’s abundant supply of clean, safe natural gas has helped to fuel development for more than 50 years.
Thanks to new technology, B.C.’s vast reserve of natural gas can now be economically recovered and be transformed into liquefied natural gas (LNG), a value-added product that can be shipped by sea. This gives us the opportunity to access new international markets where we can sell our natural gas on the world market.
Between 2000 and 2010, global trade of LNG doubled, and it’s expected to increase by another 50 per cent by 2020. Countries around the world are racing to gain a foothold in this important industry, but B.C.’s advantages — our abundant supply, low ambient temperature on the north coast, and our proximity to markets where natural gas is in high demand — give us an edge over the competition.
The BC Jobs Plan commits to bring at least one LNG pipeline and terminal online by 2015 and have three in operation by 2020, assuming all environmental and permitting applications are granted. With a new Ministry of Natural Gas Development established in June 2013, some of the world’s largest energy companies are investing in our natural gas sector and the B.C. government is taking great strides in making the vision set out in the Jobs Plan a reality:
- Since 2012, more than $6 billion in investments have been made towards developing LNG for export. That is in addition to about $1 billion already spent in preparation for construction of LNG facilities and transportation networks.
- In July 2013 a seventh company, Woodfibre Natural Gas Limited, applied to the National Energy Board for an LNG export licence. Three such licences have already been granted as momentum builds for this industry. LNG project Proponent STATUS
- Training plans are moving forward to ensure British Columbians will be first in line for jobs in the natural gas sector. The B.C. Natural Gas Workforce Strategy and Action Plan to identify labour needs moving forward has been released. Engagement is ongoing with industry and training authorities.
- The government continues to encourage the adoption of natural gas as a transportation fuel, recognizing its potential to deliver both cost and environmental benefits. Changes have been made to the Clean Energy Act to support the use of natural gas in heavy-duty vehicles.
- There is strong interest in B.C. as a preferred location to build LNG production capacity for global markets. Multiple proponents have come forward, and are already making significant investments in the province as they advance to their final investment decisions. In early 2013, four LNG project proposals came forward from global companies following an Expression of Interest call by the provincial government.
The BC Jobs Plan target of three LNG facilities by 2020 is on track. Independent studies show that if five LNG facilities were operating in B.C. by that year it could mean:
- Over $98 billion in new capital investment
- 75,000 permanent new jobs
- More than 39,000 average annual jobs over a nine-year construction period
- Potential new government revenues in excess of $100 billion over the next 30 years.
In just the past two years, LNG has become a viable industry in British Columbia, one with immense opportunity for job growth, economic prosperity for our province, and the potential to provide B.C. with a debt-free future. As such, the B.C. government created the Ministry of Natural Gas Development to ensure we move quickly to take advantage of the opportunity this industry sector presents and to capture the growing international market for LNG.
The B.C. government will build on the Jobs Plan by delivering on new commitments to:
- Work with project proponents to accelerate LNG final investment decisions
- Maximize the use of clean power in LNG projects
- Expand this industry by developing export markets for natural gas
- Ensure clarity on provincial expectations
- Review the Oil & Gas Commission operations
- Work with B.C. First Nations to ensure they are provided the ability to participate in LNG opportunities
- Support innovation to become world leaders in liquified natural gas technologies
- Secure LNG pipeline corridors with First Nations
- Ensure there is a skilled workforce to meet the labour demands of the industry
- Ensure LNG operations are the cleanest in the world
For more information, visit www.LNGinBC.ca.