This was a significant win for Canada’s clean energy future. Earlier this month the first shipment of Canadian liquefied natural gas (LNG) departed from Kitimat, British Columbia to consumers across the Pacific. This historic project marks the beginning of a prosperous new chapter for Canada’s energy exports. It increases diversification of upstream and downstream trade relationships and fortifies Canada’s competitive edge in the global marketplace. Today’s shipment comes after years of efforts to construct the first facility with the ability to commercially export LNG at a large scale. This ambitious project is backed by major investment and superlative civic will.
This is bittersweet, given that the largest project of all, LNG Canada, involves a staggering $40 billion investment. Its aim is to export 14 million tonnes of LNG per year. The facility now is moving into a more stable period. Local residents will be able to expect to see new ships more often, with projections suggesting that a ship may be able to dock every two days. Kitimat Mayor Phil Germuth emphasized the community’s patience during the commissioning phase, acknowledging that residents have largely accepted the temporary flaring from the plant’s operations.
Community Impact and Employment Opportunities
With the recent construction of the multibillion dollar LNG Canada project, the boom times have returned, bringing dramatic changes to this small town’s multicultural community. At one point, up to 7,000 workers per day were actively involved in the craft of construction. This was for a population of less than 9,000 people. This massive influx of workers posed unique challenges and opportunities for local businesses.
Mayor Germuth stated that despite the large number of workers, “there were few problems during the construction.” He recognized the long-time commitment that LNG Canada devoted to addressing community disruptions and ill effects. Though the project is remaining stabilized, short-term flaring could be seen at times as facility operations continue to increase.
In addition to creating an innovative transportation alternative, the project has played a key role in their regional job creation. Over 300 full-time, permanent jobs have been created due to spinoff impacts from the facility’s operations. More than $5.8 billion in contracts and subcontracts have been awarded, with 95% of all contract dollars going to Indigenous-owned and local businesses.
Environmental Considerations and Future Prospects
Now that Canada is advancing with its LNG export plans, the potential impacts on the environment continue to be at the center of conversations about all fossil fuel development. Chris Cooper, CEO of LNG Canada, made a rare concerted effort to share their ongoing commitment to balancing energy production with environmental sustainability.
“With abundant resources the world needs and a strategic location to deliver them, shovel-ready projects like this are how B.C. will become the engine of a newly revitalized, more independent, and growing Canada.”
Canadian leaders have expressed similar sentiments, arguing that as global demand for energy grows, Canada needs to produce energy more responsibly than others. For his part, Premier David Eby of B.C. emphasized how urgent it was to reduce Canada’s reliance on U.S. imports. He noted the importance of having independent trade routes, now more than ever.
Even critics of the Administration’s fossil fuel investment concede that this puts the Administration’s climate initiatives at risk. As some have begun to argue, Canada needs to play its hand smartly. François Poirier noted that “while the U.S. has successfully become the largest LNG exporter in the world, today Canada enters the global market,” positioning itself as an emerging energy superpower.
Looking Ahead
Now, as the first LNG shipment leaves port in Kitimat, stakeholders can look hopefully toward the future. This first stage has been a tremendous success, setting the stage for great new opportunities. We’re looking forward to a second phase that will more than double our export capacity. This vision is fully in-step with larger national priorities of improving our energy security and growing our economy.
Mayor Germuth is optimistic that citizens will soon witness the completion of LNG Canada’s continued construction. He conceded that residents would experience a number of inconveniences during this transitional period. He’s no doubt that this hard work will be worth it in the end.
“We’ve got to put up with a little bit of an inconvenience,” he said.
Cooper hit on one particularly strong theme with regard to future conduct. Once some semblance of stability is achieved, Kitimat will experience regular shipments of economic benefit both locally and nationally.
“Once we get into stability, we’ll probably have a ship every other day or so,” Cooper added.
