As liquified natural gas (LNG) industry leaders from around the world gather in Vancouver for the LNG 2023 conference to discuss the future of the global market, Canada is being urged to take a leading role in supplying the world with the essential energy source.
Facing a gas deficit for the next decade in Europe as a result of disruptions caused by Russia’s invasion of Ukraine, experts are pointing to the growing long-term demand being signalled by Asian economies.
According to Petronas CEO Muhammad Taufik, the “high-quality” LNG being produced in Canada is highly sought after and Canada only needs to step up to the plate.
“[The Asian economies] will want this high-quality LNG. I can tell you already that my marketing and trading team are already delivering — or have already delivered — carbon-neutral LNG, and there have been customers who are specifically asking for carbon-abated cargoes,” said Taufik.
However, according to the multinational executive, the window of opportunity could close should the Canadian government not rise to the occasion.
“A call-out to our Canadian friends: You do have probably one of the most unique opportunities to be part of the global solution,” said Taufik.
“You are just naturally positioned to cater to these markets, and I think it would be a huge opportunity lost if we do not pivot to actually respond to those needs.”
In March, the International Energy Agency reported that the global LNG market doubled to $450 billion as Europe rushed to offset reliance on Russia.
The United States was the largest beneficiary of the shake up, while at the same time Prime Minister Justin Trudeau turned down a possible deal with Germany, claiming that it lacked a “business case.”
At the time, Senior Fellow and Director of Natural Resources, Energy and Environment at the Macdonald Laurier Institute told True North that Canada’s political environment was to blame.
“The political environment is a deterrent. There is no confidence from the investment community that projects in Canada could be approved, or if approved could be developed in a timely manner,” said Exner-Pirot.
“Europe needs gas now, and Canada is demonstrably slow in developing these kinds of major projects, with regulatory hurdles and social acceptance being major hurdles. Also with high interest rates capital is very expensive right now, and long development times add a lot of cost. There is a window of opportunity and it is being closed.”