Thursday, March 28, 2024

$40 billion LNG Canada pipeline project in BC gets green light

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LNG Canada has officially gotten the final approval from joint venture participants to move forward with the largest project in British Columbian history.

The $40 billion project features the construction of a 670 km pipeline from northeast B.C., and a liquified natural gas export terminal in Kitimat that will process and ship LNG to Asian markets.

According to a press release on Monday evening, the plan is expected to bring in $23 billion of revenue for BC over 40 years, which the provincial government plans to invest in healthcare, education, and other key sectors.

The final approval for the project comes after multiple delays over several years due to changes in world natural gas prices.

“The Final Investment Decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects,” said Andy Calitz, CEO of LNG Canada.

“This decision showcases how industrial development can co-exist with environmental stewardship and Indigenous interests.”

According to the provincial government, the project is also expected to create up to 10,000 jobs during construction, and up to 950 permanent positions once operations are under way.

TransCanada Corporation will build, own and operate the 670 km Coastal GasLink (CGL) pipeline that will connect natural gas from northeastern British Columbia to the export plant in Kitimat.

Clashing responses from leadership

Both Prime Minister Justin Trudeau and BC Premier John Horgan lauded the construction, focusing on the scope of the investment, the project’s partnership with Indigenous communities, and the company’s efforts to keep environmental costs low.

“Today’s announcement by LNG Canada represents the single largest private sector investment project in Canadian history,” stated Trudeau in a press release.

“It is a vote of confidence in a country that recognizes the need to develop our energy in a way that takes the environment into account, and that works in meaningful partnership with Indigenous communities.”

Horgan had a similar response, while also maintaining that the project will meet the criteria of creating good jobs for British Columbians, and providing “a positive return to the province”.

However, Green Party leader Andrew Weaver was quick to express his disappointment over the developments.

“I am deeply disappointed that the NDP minority government’s tax giveaway has resulted in the country’s single biggest source of emissions receiving an FID,” said Weaver.

“The NDP were outspoken critics of the Liberal’s LNG regime, then rightly noting that it did not amount to a fair value for our resource and that the emissions were too high. Our Caucus was shocked when they turned around and delivered an even larger giveaway once in power.”

In a Vancouver press conference on Tuesday morning, Prime Minister Trudeau stated that providing Asia with natural gas will help many countries switch from using coal as their primary energy source, and thereby help keep emissions low worldwide.

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Brishti Basu
Former Senior Staff Writer and Content Manager at Victoria Buzz.

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