The window for Canada to become a major LNG player may have gotten just a little bit wider.American industry groups are lining up in a rare show of support to protest — in no uncertain terms — US President Joe Biden’s seemingly inexplicable ban on future LNG projects.In a joint letter led by the American Petroleum Institute (API), a standards organization that has morphed into the voice of the US oil and gas lobby, more than a dozen groups found commmon voice to argue for “the critical role that continued US LNG exports play in safeguarding national security, creating US jobs, supporting our European allies and contributing to global climate goals.”“Moving forward with a pause on new US LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs,” it reads..And Canadian ones — given that domestic gas producers are inking deals to export local supplies through the Gulf of Mexico. Calgary-based Enbridge is one of the largest gas pipeline operators in offshore Louisiana.The move to restrict new terminal approvals is perplexing because in 2022 Biden pledged to provide Europe with new LNG volumes to stave off an energy crisis from Russia’s war in Ukraine.An API analysis found the benefits to the Lower 48 include USD$63 billion in capital expenditures, a GDP boost of $46 billion, and 71,500 jobs supported annually from 2025-2030. At the same time, any action to slow LNG exports would jeopardize global efforts to reduce greenhouse gas (GHG) emissions. That’s because the US is the world leader in CO2 emissions reductions — largely thanks to coal-to-natural gas fuel switching in the power sector.Fuel switching from coal to natural gas is responsible for more than 60% of CO2 emissions reductions in the U.S. power sector since 2005. .“Reducing production of LNG actually harms the world achieving net zero sooner rather than later. It’s a mistake.”ExxonMobil CFO Kathy Mikells.On Friday, ExxonMobil CFO Kathy Mikells told Bloomberg limiting new project approvals in the US would inevitably lead to higher emissions from countries reliant on coal for electricity.“Reducing production of LNG actually harms the world achieving net zero sooner rather than later,” Mikells said. “It’s a mistake.”The irony is the US only became a gas exporter for the first time since 1957 when LNG exports started in 2016. It has since become the world’s largest producer and shipper of the fuel.Previously, the US was Canada’s largest customer. Now it’s its biggest competitor.And despite being a major natural gas producer in its own right, Canada has been much slower to game. That should change starting this year.On Thursday, Shell’s global CEO Wael Sawan said from London that commissioning of the massive LNG Canada project near Kitimat — which is 90% complete — would start before the end of this year and not 2025 as originally planned.According to Enbridge CEO Greg Ebel, that should give Canada a chance to assert itself on the world stage.In a speech to the Toronto Board of Trade last October, Ebel called for Canada to do just that.“The world recognizes the value of Canada's vast natural resources and the impact those resources can have for energy security, reliability, and importantly, reducing global emissions," said Ebel. "Our goal as individuals, as a nation and as a global community must be to reduce emissions across our planet as a whole. And LNG (liquified natural gas) helps get us there."
The window for Canada to become a major LNG player may have gotten just a little bit wider.American industry groups are lining up in a rare show of support to protest — in no uncertain terms — US President Joe Biden’s seemingly inexplicable ban on future LNG projects.In a joint letter led by the American Petroleum Institute (API), a standards organization that has morphed into the voice of the US oil and gas lobby, more than a dozen groups found commmon voice to argue for “the critical role that continued US LNG exports play in safeguarding national security, creating US jobs, supporting our European allies and contributing to global climate goals.”“Moving forward with a pause on new US LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs,” it reads..And Canadian ones — given that domestic gas producers are inking deals to export local supplies through the Gulf of Mexico. Calgary-based Enbridge is one of the largest gas pipeline operators in offshore Louisiana.The move to restrict new terminal approvals is perplexing because in 2022 Biden pledged to provide Europe with new LNG volumes to stave off an energy crisis from Russia’s war in Ukraine.An API analysis found the benefits to the Lower 48 include USD$63 billion in capital expenditures, a GDP boost of $46 billion, and 71,500 jobs supported annually from 2025-2030. At the same time, any action to slow LNG exports would jeopardize global efforts to reduce greenhouse gas (GHG) emissions. That’s because the US is the world leader in CO2 emissions reductions — largely thanks to coal-to-natural gas fuel switching in the power sector.Fuel switching from coal to natural gas is responsible for more than 60% of CO2 emissions reductions in the U.S. power sector since 2005. .“Reducing production of LNG actually harms the world achieving net zero sooner rather than later. It’s a mistake.”ExxonMobil CFO Kathy Mikells.On Friday, ExxonMobil CFO Kathy Mikells told Bloomberg limiting new project approvals in the US would inevitably lead to higher emissions from countries reliant on coal for electricity.“Reducing production of LNG actually harms the world achieving net zero sooner rather than later,” Mikells said. “It’s a mistake.”The irony is the US only became a gas exporter for the first time since 1957 when LNG exports started in 2016. It has since become the world’s largest producer and shipper of the fuel.Previously, the US was Canada’s largest customer. Now it’s its biggest competitor.And despite being a major natural gas producer in its own right, Canada has been much slower to game. That should change starting this year.On Thursday, Shell’s global CEO Wael Sawan said from London that commissioning of the massive LNG Canada project near Kitimat — which is 90% complete — would start before the end of this year and not 2025 as originally planned.According to Enbridge CEO Greg Ebel, that should give Canada a chance to assert itself on the world stage.In a speech to the Toronto Board of Trade last October, Ebel called for Canada to do just that.“The world recognizes the value of Canada's vast natural resources and the impact those resources can have for energy security, reliability, and importantly, reducing global emissions," said Ebel. "Our goal as individuals, as a nation and as a global community must be to reduce emissions across our planet as a whole. And LNG (liquified natural gas) helps get us there."
