CALGARY — Canada could generate nearly $1 trillion in natural gas spending by 2050 by dramatically expanding LNG exports, but lengthy approvals and high construction costs threaten to hold back that growth, according to a new S&P Global report.The report, released Thursday, estimates that reaching Ottawa’s export target of upwards of 100 million tonnes annually could support nearly 250,000 jobs a year, CBC News reported.Canada’s operating LNG export capacity currently stands at 14 million tonnes annually, leaving a substantial gap between existing production and the federal government’s ambitions.S&P Global vice-chairman Daniel Yergin told CBC that overcoming permitting and cost challenges would allow Canada to become a major global LNG supplier while reducing its economic reliance on the United States..Blackstone leads US$3.1 billion deal for stake in Mitsubishi’s LNG Canada subsidiary.“If Canada can address its permitting issues and its cost issues, Canada can play a very big role in global LNG, which would be obviously beneficial for the Canadian economy and would help to globalize its economy and make its economy less dependent upon on its neighbour to the south,” said Yergin.The report found Canadian permitting has taken 27 months longer than in Texas, while pipelines cost 160% more to build.Ottawa has introduced legislation intended to accelerate regulatory reviews, but Yergin said companies will need evidence that reforms are delivering faster approvals before committing money.Western Canada has abundant natural gas that can be produced at some of North America’s lowest costs. Moving that gas from Alberta and northeastern British Columbia to coastal export terminals, however, has proven expensive and complicated.Coastal GasLink, developed by TC Energy and partly owned by local First Nations, experienced delays and cost overruns. The project also faced opposition from some aboriginal communities and environmental groups.Canada must also compete with the United States and other countries seeking to attract LNG spending.LNG Canada is currently the country’s only operating LNG export facility. Six other projects are under construction or in development, but combined with existing capacity, they would produce just over 50 million tonnes annually — roughly half Ottawa’s target..Ksi Lisims LNG signs 20-year supply deal with Germany’s SEFE.Yergin said Canada’s extensive resources and relatively short shipping route to Asia give it an advantage in securing overseas customers.“Asian buyers want that LNG from Canada,” he said.Disruptions to global natural gas markets from conflict in the Middle East have reinforced buyers’ interest in securing supplies from multiple countries and avoiding vulnerable shipping routes, Yergin said.Demand for natural gas is expected to increase over the coming decades as population growth, AI data centres and air conditioning drive greater energy consumption.The S&P report also found Canadian LNG has 55% lower greenhouse gas intensity than comparable projects elsewhere, offering another potential selling point as Canada seeks a larger share of the export market.
