A 204-metre tanker ship has arrived on B.C.’s North Coast, making it the first liquefied natural gas (LNG) carrier to arrive in Kitimat, as a major energy export project prepares to come online.
The Maran Gas Roxana, sailing under the flag of Greece, made its way through the Douglas Channel Wednesday, carrying a load of LNG that will be used for equipment testing at the LNG Canada site.
If all goes to plan, it is expected to export 14 million tonnes of natural gas a year, creating close to 300 ongoing jobs for an estimated value of $575 million annually for 40 years, according to the B.C. government. A proposed Phase 2 of the project would increase the export amount to 28 million tonnes annually.
At a cost of $40 billion, the Canadian government says the project is the “largest single private sector investment in the history of the country,” with backing from Shell, Petronas PetroChina, Misubishi Corporation and the Korea Gas Corp.
“LNG Canada wishes to thank all of the individuals and organizations involved with helping us safely reach this important milestone,” LNG Canada corporate relations vice-president Teresa Waddington said in a statement.
“Together, we’re making history.”
LNG projects have been supported by successive B.C. Liberal and NDP governments as a key area for economic growth and reduced reliance on the United States.
Natural Resources Canada estimates LNG has the potential to add $7.4 billion to the national economy a year by opening up new overseas markets for product that is otherwise landlocked to North America.
With the uncertainty surrounding Canada-U.S. trade relations, the federal government has recently invested new money in developing B.C.’s LNG industry, with Natural Resources Minister Jonathan Wilkinson saying “the need to build a resilient economy with new export opportunities for Canadian energy suppliers has never been clearer.”
Critics, however, say the projects undermine the province’s climate goals by creating more fracking and pipelines overall.
Testing for export
The LNG Canada plant will receive natural gas, transported via a 670-kilometre pipeline, from near Dawson Creek, cool it, and ship it to Asian markets.
Prior to export, the gas needs to be cooled to about -160 C to transform it into liquid, which makes it easier and safer to ship. It’s estimated that B.C. has stores of 93 trillion cubic metres of natural gas, mostly found in the northeast.
The gas that arrived on this week’s carrier has already been cooled and will run through the system in order to make sure everything is operational.
As the testing takes place, flaring will be more frequent and visible in the community, as well.
WATCH | A video produced by LNG Canada about flaring: https://www.youtube.com/watch?v=Ch80Is51c
Environmental, electricity concerns
The project has the backing of the provincial and federal governments, as well as approval from 25 First Nations.
Its advocates say LNG is the cleanest-burning fossil fuel in the world and helps replace emissions worldwide, contributing to international climate goals.
Critics, however, argue LNG creates its own emissions through the liquefaction and transportation process, as well as through the drilling and flaring of natural gas.
Earlier this year, a coalition of advocates, businesses, academics and First Nations operating under the B.C. Climate Emergency Campaign gave B.C. a failing grade on several climate-action goals, in part because of its support for LNG projects.
They say building massive LNG terminals that require huge upfront capital investments “locks in” future greenhouse gas emissions at a time when the world needs to be planning for a lower-carbon future.
“We have to understand that LNG is not the answer. The market is global, it’s volatile and it’s too dangerous and too destructive,” Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs, which supports the group’s campaign, said at a news conference in January.
In the report, he’s quoted as saying that continuing with LNG-project permitting and terminal development, along with fracking, is irresponsible in the midst of a climate emergency.
One way companies are trying to make the projects more environmentally friendly is by using electricity, rather than natural gas, to run, but that presents its own challenges.
According to documents first obtained by the Narwhal under Freedom of Information requests, a briefing note prepared for Premier David Eby in March 2024 showed that three projects, including Phase 2 of LNG Canada, would require about 1,400 megawatts of power to run on electricity, the equivalent of powering about 600,000 homes.
LNG Canada’s Phase 2 on its own would require about half the electricity being produced by the newly operational Site C dam, the documents show.
The current plan and permitting, though, is to use gas-powered turbines if Phase 2 moves forward, Waddington said.
“We don’t rule out the possibility of replacing Phase 2 gas turbines with electric drive turbines at some point, but a number of developments need to take place, including an expansion of the province’s hydroelectric grid capacity, before a timeline is contemplated,” she said in a statement.
