The report, A Rising Tide: The Economic Impact of B.C.’s liquefied natural gas industry, examines the potential economic impacts of growing Canada’s LNG industry to 56 million tonnes per annum (MTPA) by 2034 with the investment in infrastructure, additional LNG projects and the expansion of the $40 billion Phase 1 LNG Canada project in Kitimat, B.C.
The report analyzes the economic impact this scale of investment would have across the country and the impact to the Canadian manufacturing, resource, tourism, finance, transportation, technology, arts and professional services sectors. LNG facilities are long-lived assets and will operate over an expected 40-year lifespan, providing economic growth, employment, taxes and royalty revenues to B.C., other Western provinces, Ontario, Quebec and the federal government for decades to come.
“This report shows that by all of us working together– governments, industry, Indigenous nations, workers and communities – to responsibly build an LNG industry, we can provide a significant and much-needed economic boost to our country,” said Bryan Cox, President and Chief Executive Officer of the Canadian LNG Alliance. “Importantly, through our low-emission LNG, Canada will make an outsized contribution to reducing global emissions and particulate matter, while investing in the critical infrastructure we need for our continued transition to a cleaner energy future.”
Report Highlights:
- Between 2020 and 2064, more than $92 billion in revenue could be generated for provinces and territories in Canada. Of this total, nearly $78 billion would accrue to British Columbia. Over $64 billion would be generated for the federal government in tax revenue.
- British Columbia’s portion would exceed $8 billion annually, an increase in the province’s GDP of more than three per cent.
- Alberta’s GDP would see an annual increase of $1.6 billion, or just over 0.5 per cent.
- For Ontario, the figure would be $1 billion, or just over 0.1 per cent of annual GDP.
- For Quebec, the benefits would total $222 million a year.
- A gain of 71,000 jobs annually in British Columbia alone would represent a 3 per cent increase in total provincial employment as of May 2020. Neighbouring Alberta would add more than 9,200 jobs. Ontario would see more than 10,800 jobs created. Quebec, an additional 2,600 jobs, Manitoba more than 1,000 jobs, and Saskatchewan more than 800 new jobs each year.
- With over $2 billion in annual tax and royalty payments, the LNG sector would become one of the largest revenue generating industries for British Columbia.
- Ontario, Alberta, and Quebec combined could expect more than $360M in additional tax revenues annually.
The top employment gains annually as a result of an expansion in Canada’s LNG industry would be in the following sectors:
- Engineering and Construction: 24,500 new jobs
- Retail and wholesale trade: 14,300 new jobs
- Professional, scientific and technical services: 12,800 new jobs
- Mining, quarrying, and oil and gas extraction: 7,900 new jobs
- Manufacturing: 6,700 new jobs
- Transportation and warehousing: 5,000 new jobs
- Finance, insurance, real estate, rental, leasing: 6,100 new jobs
- Accommodation and food services: 4,300 new jobs
- Admin. And support, waste management, remediation: 4,600 new jobs
- Health care, social assistance, and other services: 3,200 new jobs
- Information, culture, arts, and recreation: 2,200 new jobs
Liquefied natural gas is natural gas that is cooled to around minus 160 degrees Celsius. At this temperature, it becomes a clear, colourless and odourless liquid. It is non-corrosive and non-toxic. Because natural gas has a fraction of the fine particulate matter of coal and fewer carbon emissions, more than 30 countries around the world currently import natural gas as LNG to help reduce air pollution and meet their climate targets.
The report was funded by the Canadian LNG Alliance and is available, for free, from the Conference Board of Canada’s e-Library.
SOURCE Canadian LNG Alliance
For further information: Conference Board of Canada: (866) 242-0075, [email protected]; Canadian LNG Alliance: (778) 379-7640, [email protected]
Related Links
www.canadianlnga.ca
