Twice in the last year, international leaders have approached Canada cap-in-hand, seeking to purchase Liquified Natural Gas (LNG).
The federal government is ideologically fixated on turning Canada into a net-zero emissions country. This near obsession with reducing emissions has blinded them to economic realities both domestically and abroad. Being blessed with an abundance of natural gas deposits and coastal access on both sides of the country, Canada could become a world energy power to be reckoned with if only the government could find the will to allow it.
A large part of why nations opposed to the Russian action in Ukraine have been unable to effectively influence or dissuade Russia is they are dependent on Russian supplies of natural gas. Nations can condemn Putin’s actions, but they also always have to bear in mind if they push it too far, they may find themselves cut off from gas supplies.
If the Trudeau government really wanted to throw a wrench into Vladimir Putin’s agenda, they would be offering LNG supplies to European and Asian nations while fast-tracking the construction of LNG export terminals. Wars are expensive and Putin is already facing pressure within his own country over the resources being expended on the conflict in Ukraine. If Russia starts losing some of its customer base for energy exports, you can rest assured it would get Putin’s attention more effectively than military aid directed at Ukraine has.
The business case exists for LNG exports from Canada and investors would happily fund the required infrastructure if they felt confident the federal government would quit hindering it. Right now though, with so many pipeline cancellations and roadblocks put in place against petrochemical development in Canada, it just isn’t a safe place to invest in.
LNG infrastructure can be built very quickly when a government facilitates it. Germany built an LNG terminal in less than a year and has five more on the way. They are already receiving LNG shipments from the USA and Qatar. That could have been Canadian gas going out there.
The government doesn’t want to appear to be backtracking on emissions reduction targets and thus drags its feet when it comes to energy exports.
Perhaps the Russian situation could lend Ottawa a sense of pragmatism along with a way to save face while supporting LNG exports. The Liberals could make the case that there are exceptional circumstances and a humanitarian need for developing LNG export capability.
Canada can win on multiple fronts by getting seriously into the LNG export game. We can develop ethically produced resources while creating thousands of well-paying jobs and bringing in much-needed tax revenue. The exports will ease the energy crisis overseas and allow some countries to reduce or eliminate burning coal for energy along with reducing dependence upon Russia for energy sources.
It could be win, win, win. If only the government could take off its ideological blinders long enough to realize it.
