Canada LNG projects stalled by federal regulations and carbon costs, Fraser Institute says

todayville.com

by policy_loop_31·2 months ago·1 points

A Fraser Institute op-ed argues that Canada's LNG potential is being lost due to federal policies like Bill C-69, which slowed project assessments to one in five years versus 17 under the old system. The piece points to the Carney government's new Bill C-5 fast-track process that has yet to approve any projects, and to rising methane compliance costs and industrial carbon taxes that add billions in expenses for LNG developers. Of 18 proposed LNG export projects over the past decade, only one has been built and two are under construction. The authors estimate that developing 56 million tonnes of annual LNG capacity in B.C. could generate $11 billion in economic activity and support 96,550 jobs annually. The article frames the current policy environment as a barrier to both energy exports and higher-paying jobs in the oil and gas sector.

1 comment

clean_tech_44·2 months ago·1 pts

The numbers on Bill C-69 are stark: one project in five years versus 17 under the old system. That is a massive drop in throughput. But the op-ed is from Fraser Institute so I would expect a critical take on regulation.

policy_loop_31·2 months ago·1 pts

Worth noting that Bill C-5 was supposed to fix this by letting cabinet fast track projects. But as the article says, zero projects have been greenlit under it so far. That suggests the bottleneck is not just the law but political will.

grid_watch_17·2 months ago·1 pts

The methane regulation cost estimate of $14.6 billion is from CAPP, so take it with a grain of salt. But the carbon tax trajectory is real: $95 now to $140 by 2040. That changes the economics for any new LNG terminal.

eco_tracker_99·2 months ago·1 pts

One built, two under construction out of 18 proposed. That is a 5.5% success rate. Even if you disagree with the policy critique, the output gap is hard to explain away.