6 Reasons to Invest in Liquefied Natural Gas (LNG) from Canada
Why international markets should choose Canada for clean LNG, the ideal transitional fuel to a lower-carbon economy:
Canada has…
1. Experience.
Canada has been producing natural gas for nearly a century. Today, thanks to industrial advancements, Canada boasts extensive natural gas infrastructure, and the world-class expertise and technology you would expect from a reliable and resilient natural gas sector. According to the International Energy Agency, Canada is fourth in global natural gas exports and fifth in global production.
2. Massive reserves of natural gas.
Canada’s natural gas deposits are among the largest and most productive in the world. There’s about 300 years’ worth, at current rates of production. That’s 1,566 trillion cubic feet, or 44 trillion cubic metres, of marketable natural gas resources, which puts us in the top tier globally. Considering that the average natural gas well pumps roughly 250,000 - 350,000 cubic feet per day, it would take one well roughly 3,000,000 days to pump one trillion cubic feet equivalent of natural gas.
3. A competitive fiscal environment with regulatory advantages.
Canada is committed to maintaining investor certainty. It:
- Has the lowest corporate tax rates of any G-7 country
- Offers favourable tax treatment for LNG developers, including an accelerated capital cost allowance of up to 30 percent.
- Has clear time-lines for the regulatory review process.
Canada recently updated its environmental and regulatory processes to ensure even greater public trust and help to get resources to market responsibly. These new processes are robust, incorporate science, protect the environment, integrate traditional knowledge of Indigenous people and support economic growth.
At the same time, the country is renewing its relationship with Indigenous peoples and their communities. Exporting resources to the world begins with strong community engagement at home. "Our first priority is that LNG projects in our province are approved for the right reasons. It is vital that we strive to protect our environment, while at the same time pursue sustainable economic development opportunities for First Nations communities and our province," says Karen Ogen-Toews, CEO of the First Nations LNG Alliance.
Canada has also introduced new 40-year LNG export licenses to support proponents who work from longer business cases. The Canada Energy Regulator has already issued 10 of these long-term export licences, totalling approximately 155 Million tonnes per year.
4. Proximity to traditional and emerging LNG markets.
The LNG facilities proposed for the east coast are six to eight shipping days from Europe and for the west coast are about 10 shipping days from Asia, which actually puts Canada closer than some traditional suppliers from the Middle East and Africa.
Time is money. And Canada can help investors save lots of it.
5. A liquefied natural gas market with full government support.
The Government of Canada believes in the long-term viability of a sustainable and responsible LNG sector and is committed to advancing natural resource development projects in collaboration with the provinces and Indigenous communities.
Governments across the country collaborate to support resource industries, including providing information about North American resources and markets; supporting investment in Canadian projects and industries; promoting international trade; working to ensure marine and pipeline safety; and supporting Indigenous and community consultation and engagement.
These are the benefits of investing in a country with a strong democratic tradition and a demonstrated respect for property rights and the rule of law.
6. A variety of business opportunities in its natural gas industry.
Investors in Canada can take advantage of business opportunities throughout the natural gas value chain. Whether it’s upstream exploration and production, natural gas processing, natural gas liquids, petrochemicals, pipelines, LNG export terminals or global shipping. “We have the resource. […] We should be trying to develop that product here and liquefy it here”, said Byng Giraud, Vice-President Corporate Affairs, Pacific Oil & Gas – Woodfibre LNG.
Canada is an ideal choice for international trade and investment
Bottom line? Canada is open for business. Because the resources are plentiful, the opportunities are real, and time is valuable.
Contact Natural Resources Canada to learn more about LNG in Canada.
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