Canada eyes Asian markets for B.C. natural gas exports
Proposed West Coast projects face less opposition than oilsands pipelines projects
By Max Paris, Environment Unit, CBC News
Posted: Sep 20, 2012 5:14 AM ET
Last Updated: Sep 20, 2012 7:34 AM ET
Heavy equipment can be seen working on the Kitimat liquefied natural gas project at Bish Cove, south of Kitimat, B.C., in June. Once built, the project's terminal would export natural gas from northeastern B.C. to markets in Asia. (Robin Rowland/Canadian Press)
Canada could some day export nine billion cubic feet per day of liquefied natural gas to Asia through five proposed plants on the West Coast, Natural Resources Minister Joe Oliver told a Japanese audience this week.
Those major energy projects come with little of the opposition from politicians and native groups that threaten the proposed Northern Gateway oilsands pipeline.
In a speech to the Liquefied Natural Gas Producer-Consumer Conference in Tokyo this week, Oliver trumpeted Canada's status as a rising "global energy leader."
"[Canada is] already the third-largest producer of natural gas in the world," Oliver told an audience that included Japan's Economy, Trade and Industry Minister Yukio Edano.
Oliver is visiting Japan and South Korea on a mission to drum up business for Canada's fledgling liquefied natural gas (LNG)industry and is travelling with business executives from AltaGas, Encana, TransCanada Corporation, Shell Canada and Nexen.
A rendering of a proposed liquefied natural gas facility in Kitimat, B.C. (Submitted to CBC)There is a global race to get LNG into the Asian market because demand — and therefore prices — are considerably higher there than in North America. In May of this year, its price was 10 times higher on the Asian market.
Adding five new LNG plants represents tens of billions of dollars in potential industrial development on B.C.'s north coast.
One plant is planned for Prince Rupert. Four would be in Kitimat, which is also the proposed terminus for Enbridge's Northern Gateway oilsands pipeline. Two of the LNG projects in Kitimat already have National Energy Board-approved export licences.
By comparison, Gateway is a $6-billion project.
So, why all the fuss over Northern Gateway, which is tiny in comparison to all the LNG projects?
The difference is in the product each project brings to market.
Environment and economic arguments
"LNG is non-toxic, odourless, non-corrosive and less dense than water. It is a stable, low risk fuel. If it spills, LNG will warm, rise and dissipate," said Rich Coleman, B.C.'s energy minister, in an interview.
"The risk to the natural environment is greater with [oilsands] bitumen than it is with natural gas," said John Horgan, the B.C. NDP's energy critic.
The proposed Northern Gateway pipeline to bring bitumen from Alberta to B.C. has drawn protests in Kitimat, the B.C. port that would ship it to Asia. (Robin Rowland/Canadian Press)B.C. politicians of all stripes also see enormous economic potential in LNG.
Natural gas is a mature industry in B.C. and a major natural resource for the province. Horgan and Coleman both foresee jobs being created and royalty revenues pouring in, with the added bonus of minimal ecological hazard with LNG.
"No reward, high risk with one. And more reward, less risk with the other," Horgan said.
B.C. native groups are also much less skeptical of LNG compared to oilsands projects.
The Haisla First Nation in Kitimat is equal partners in one of the NEB-approved projects and landlords for the other.
"It was one of our requests to Joe Oliver himself to actually start supporting natural gas at the higher levels and over in Asia. So we actually appreciate this initiative," said Haisla Chief Councillor Ellis Ross.
The Haisla story, when it comes to natural gas, is similar to the rest of the province's: they know the product, they've had experience with it, they've weighed the risks and benefits and they believe natural gas is the way to go.
"The safety record of natural gas overall over the last 30, 40 years is actually in direct contrast to the safety record of the crude oil industry," argues Ross.
He adds that in the case of a spill, natural gas would evaporate into the air.
"Crude oil or diluant or bitumen stays in the environment for ... I think the jury's out on how long that actually crude oil or bitumen stays in the environment," he said.
Share Tools
Trudeau files formal request for details of Wright/Duffy payment deal by Kady O'Malley May. 23, 2013 9:26 AM Liberal leader submits written request for details of all records -- including any 'letter of understanding'
Top News Headlines
- 2nd suspect in Tim Bosma murder case to plead not guilty
- The lawyer for Mark Smich says the Oakville, Ont., resident will plead not guilty to first-degree murder in the death of Tim Bosma, the Hamilton man who disappeared earlier this month after taking two men on a test drive of his truck. Smich was charged today, after Dellen Millard of Toronto was also charged with first-degree murder. more »
- 2 more arrests linked to hacking death of British soldier
- WARNING: This story contains graphic content. Two more people have been arrested by officers investigating the hacking death of a U.K. soldier in London, say British police. more »
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Beset by three so-called scandals at the moment, Barack Obama has been meeting his accusers and the press head on, Neil Macdonald writes. The same cannot be said for how Stephen Harper operates. more »
- Toronto Mayor Rob Ford fires chief of staff
- Toronto Mayor Rob Ford has parted ways with his chief of staff, the latest development in a tumultuous week at city hall where the pressure is growing for the mayor to comment on crack cocaine allegations raised by two media outlets. more »
Must Watch
Latest Politics News Headlines
- 'Mistaken' Duffy asked Senate committee how much he owed
- Letters between Senator Mike Duffy and Senator David Tkachuk, head of the committee looking into his expenses, reveal that Duffy was at times an active participant in the Senate investigation. more »
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Beset by three so-called scandals at the moment, Barack Obama has been meeting his accusers and the press head on, Neil Macdonald writes. The same cannot be said for how Stephen Harper operates. more »
- Stephen Harper attends Pacific Alliance trade talks
- The leaders of Canada and the Pacific Alliance will be sizing each other up today to see if Canada might be a good fit with the nascent Latin American trade bloc. Canada has observer status at a two-day summit in Colombia. Watch our livestream as talks get underway. more »
- Trudeau raises environmental questions over pipeline
- Liberal Leader Justin Trudeau says a proposed west-east pipeline project will not go forward unless it addresses key environmental concerns. more »
The National
The House
- Questions mount for Harper and chief of staff Nigel Wright in Senate scandal May. 18, 2013 1:15 PM This week on The House, with Senators Wallin and Duffy now out of the Conservative caucus, we get reaction from NDP Ethics critic Charlie Angus. We also hear directly from Senator Patrick Brazeau who says the Conservatives have thrown him under the bus. Plus we speak with B.C. Premier Christy Clark after her stunning victory.
- 2nd suspect in Tim Bosma murder case to plead not guilty
- 2 more arrests linked to hacking death of British soldier
- Chained-teen's mom wants man who pleaded guilty 'to suffer'
- How was the Mike Duffy report 'whitewashed?'
- Toronto Mayor Rob Ford fires chief of staff
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Vancouver man abandons Porsche on B.C. ferry
- B.C. teen saves pet dog in 'terrifying' cougar attack
- Mike Duffy's primary home not P.E.I., unedited Senate report says

