Report: LNG deliveries to remote Canadian regions can cut costs, emissions

OTTAWA - A new report released today says major economic benefits and greenhouse gas (GHG) emissions reductions can occur by expanding the delivery of LNG to remote communities and industrial facilities in Canada.

In Canada, nearly 300 remote communities and dozens of large industrial facilities are not connected to the North American electrical grid or to natural gas distribution pipelines. 

Access to affordable and clean energy is a challenge for these communities and serves as a barrier to economic development and GHG emission reductions.

Responsible development of Canada's North means the best use of the dollars required. Affordable energy like LNG frees dollars from costlier energy alternatives, allowing local decision makers the freedom to dedicate these monies to other important priorities in their communities.

A new report by ICF International concludes that, by 2025, at least 23 power generation and 58 industrial customers could convert to LNG. Over the 25-year study period, this move would result in:

• $2.4 B in energy cost savings for the LNG customers
• A cumulative reduction of 11.1 metric MMt of CO2, equivalent to the annual CO2 production of over 2.3 MM passenger vehicles
• The addition of more than $12.5 B to Canada's GDP, support of 118,000 net job-years, and an increase in government revenues by $4.5 B.

The Vancouver Declaration, signed by Canada's First Ministers, identifies the need to identify alternative energy options for Indigenous and northern communities. 

The Canadian Gas Association (CGA) recommends that the Pan Canadian Climate Strategy recognize the role of LNG as an affordable, clean and reliable alternative energy choice.

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