In the era of fossil fuel’s global decline, why is Canada hanging onto LNG?
Liquified natural gas (LNG) is being promoted as a green transition option to replace dirtier fuels. But when renewables are coming in cheaper than new gas- and coal-fired plants for two-thirds of the world, why is this the case?
LNG’s economic prospects are waning because renewables price declines are having a bigger impact than anticipated, and there is an LNG global market glut. The shale gas industry is also experiencing more costs than revenues, and greenhouse gases (GHGs) in the LNG supply chain may be as bad as coal.
But, as with the case with oilsands, Canada chooses to ignore the signs of a global evolution to a green economy at its own peril while heading toward stranded assets.
Yet the Government of Quebec is now promoting an LNG facility north of Quebec City and a pipeline to bring in Alberta shale gas using the same clean energy transition export messages as those used for the LNG Canada facility in Kitimat, B.C. and the Coastal Gaslink shale gas pipeline.