Energy and Natural Resources Minister Jonathan Wilkinson says the federal government is “not interested” in subsidizing future liquefied natural gas (LNG) projects, including the electrification of projects currently in the works.
In an interview with CTV Question Period host Vassy Kapelos airing on Sunday, Wilkinson said those investments are up to the private sector.
“The government is opposed to using government money to fund inefficient fossil fuel subsidies. We’re the first country in the world to actually do that. We are not interested in investing in LNG facilities. That’s the role of the private sector. They need to assess the business case and make the investments,” said Wilkinson.
The minister’s comments come just days after Greek Prime Minister Kyriakos Mitsotakis exclusively told CTV Question Period that Greece would “of course” be interested in purchasing Canada’s LNG if the resource was available.
“We are a big entry point for LNG, not just for the Greek market, but also for the Balkans, for Eastern Europe,” Mitsotakis said. “Theoretically, we could even supply Ukraine.”
When asked whether Canada could be an ideal partner in that, Mitsotakis said “absolutely.”
“Canada is a country with which we share so many values,” he said, pointing to his country’s alignment with Canada on several geopolitical issues, including Ukraine and the Israel-Hamas war.
Germany and Japan have also voiced interest in purchasing Canada’s LNG. But in August 2022, Prime Minister Justin Trudeau said he wasn’t sold on the idea of LNG exports being part of Canada’s long-term plan when it comes to becoming a reliable supplier of clean energy to Europe.
“We are in a situation in the short-term, where we will do what we can to contribute to the global supply of energy by increasing our capacities … and explore ways to see if it makes sense to export LNG, and if there’s a business case for it, to export LNG directly to Europe,” Trudeau said.
Whether Canada can and should plan to export to European countries in the future has been an ongoing political debate for years. Supporters of LNG argue the energy source can play a key part in working towards a lower-carbon future. But environmental critics are concerned the expansion of LNG will prolong the use of fossil fuels.
On Thursday, New Brunswick Premier Blaine Higgs testified before a House of Commons committee meeting and made a plea to Ottawa to export LNG to Europe to replace the federal carbon tax. Last year, Repsol decided against developing a LNG terminal in Saint John due to the associated costs.
Wilkinson says New Brunswick can move forward on its own if it wants to ship LNG to Europe.
“Certainly Premier Higgs, who has gas resources in New Brunswick, if he chooses to develop them, could look to actually develop a project that could ship LNG to Europe, but obviously that would need to be done in a manner that’s consistent with New Brunswick’s climate plan,” said Wilkinson.
Any future LNG projects would need to meet Canada’s 2030 climate goals, which includes a target to reduce oil and gas methane emissions by at least 75 per cent from 2012 levels by 2030. Wilkinson says meeting that reduction target will require LNG production to rely on clean electricity.
“You have to do a lot to reduce emissions of methane in the upstream and we’re bringing in place regulations to require 75 per cent reductions. You have to actually, by using electricity, clean electricity. You can’t just burn natural gas in order to liquefy, or the carbon footprint that you leave is far too large,” Wilkinson said.
When asked by Kapelos whether he is ideologically opposed to exporting LNG as a resource, Wilkinson pointed to projects moving forward in Western Canada, but reiterated the importance of projects meeting climate commitments.
“We support the work that can be done to displace heavier hydrocarbons, but it’s got to be within a frame that fits with respect to the commitments we and others have made,” Wilkinson said.
According to Natural Resources Canada, there are currently eight LNG export projects “in various stages of development across Canada.” The Shell-led LNG Canada in Kitimat, B.C. will be Canada’s first large-scale LNG export facility and is aiming for first exports by 2025 to Asian markets.
With files from CTV News’ Parliamentary Bureau reporter Spencer Van Dyk and CTV News Senior Digital Parliamentary Reporter Rachel Aiello
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
