Washington, Nov 12 (SocialNews.XYZ) Canada could become the world’s third-largest exporter of liquefied natural gas (LNG), but must overcome investment and infrastructure hurdles before a narrowing market opportunity slips away, S and P Global Energy said in a study announced on Thursday.
Reaching the Canadian government’s ambition of exporting 100 million tonnes annually by 2050 could support nearly C$1 trillion in investment across the LNG supply chain and about 250,000 jobs annually, according to the company’s release.
Those figures are projections under an expanded-development scenario, rather than investment commitments or jobs already created. The study estimates Canada is currently on course to reach 36 million tonnes of annual LNG exports by 2050.
“Canada's current position in world energy falls well short of its competitive strengths in terms of natural resources and geography,” said Daniel Yergin, vice chairman of S&P Global. “The country will need to move at speed to improve its position to meet its ambitions and potential.”
The study identifies a competitive race for future demand. More than 600 million tonnes of proposed global LNG capacity is at various stages of development, competing for an estimated 176 million tonnes of market opportunity by 2050.
Meeting the 100-million-tonne target would require upstream and critical infrastructure investment to rise to 2.5 times its current level, alongside a tripling of upstream drilling activity, according to the release.
The study projects that achieving the target could contribute C$888 billion to Canadian gross domestic product through 2050 and generate C$151 billion in tax revenues.
It estimates that about one-fifth of the employment and GDP benefits would occur outside the western provinces where production is concentrated.
Canada’s advantages include abundant gas resources, comparatively low production costs and access to shipping routes serving major markets without passing through geopolitical chokepoints, the study said.
It identified 375 trillion cubic feet of gas resources economically recoverable at prices below US$3 per million British thermal units. The Montney basin could largely supply the additional gas needed to reach the export target, it said.
Source: IANS
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