Natural Resources Minister Seamus O’Regan responds to a question during Question Period in the House of Commons on December 10, 2019 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Natural Resources Minister Seamus O’Regan responds to a question during Question Period in the House of Commons on December 10, 2019 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Cleaner LNG one answer to climate change crisis, O’Regan tells investors

Natural Resources Minister Seamus O’Regan says Canadian LNG is the best choice for global energy investors

Canadian LNG is the best choice for global energy investors looking for sustainable and competitive natural gas production, Natural Resources Minister Seamus O’Regan said Monday.

His speech on the opening day of the virtual Gastech 2020 conference comes just two weeks before Prime Minister Justin Trudeau is set to unveil his promised “ambitious green agenda” in a throne speech laying out his government’s COVID-19 economic recovery plan.

O’Regan hinted at some of what may come in that plan, including promises of investments in the electrical grid and energy efficiency programs, a focus on workers and investing in technology to make fossil fuels cleaner.

“We’ll get to where we need to be tomorrow by using what we have at our fingertips today,” O’Regan said.

He said the best path to a healthy, low-emission economy includes Canada making natural gas a greener product that can be sold overseas — mainly to Asian nations — to replace coal as a source of electricity. That includes developing better carbon-capture and storage technology, as well as investing in research and commercialization to come up new ways to get gas to be more sustainable.

Politically, support for LNG crosses party lines in Ottawa. A plan to sell Canadian LNG to overseas market was one of the chief climate change policies in the Conservative campaign in 2019 and was also part of new Conservative Leader Erin O’Toole’s leadership campaign platform.

NDP Leader Jagmeet Singh has also been supportive of LNG projects, particularly the LNG Canada project in northern British Columbia that is also fully backed by the provincial NDP government in B.C.

O’Regan said the International Energy Agency forecasts growth in demand for gas for decades and that “bodes well for Canada.”

The IEA’s own forecasts are a bit more complex than that. Looking at existing policies around the world, it predicted in 2019 that LNG will grow 36 per cent over the next 20 years. However under a “sustainable development scenario” that transforms the world’s energy use in line with the Paris climate change agreement goals on global warming, it expects natural gas use to peak by the end of this decade.

The IEA also warned that shipping LNG to Asia may not be as attractive as some think given dropping prices for renewables and rising prices for natural gas. Those warnings however came before the COVID-19 lockdowns curbed demand and saw gas prices plummet, a scenario the agency says will not reverse itself very quickly.

Keith Stewart, a senior energy strategist at Greenpeace Canada, said the 11 LNG project proposals in Canada which O’Regan referenced in his speech are likely to become “white elephants” that are abandoned in favour of everything from wind and solar to hydrogen. He said many major investors have already shown reluctance if not outright refusals, to back fossil fuels any longer.

“Politicians want to tell us ‘okay we don’t have to change very much’ but we do and we have to start planning for those big changes rather than imagining we can kind of tweak our way out of this,” he said.

The IEA does say that switching from coal to gas reduced global emissions more than 500 million tonnes between 2010 and 2019, an amount equal to two-thirds of Canada’s total annual greenhouse gas emissions. It estimated that replacing coal with gas in existing power plants could save 1.2 billion tonnes of emissions, noting that may be the best case for scenario for gas.

Catherine Abreu, executive director of the Climate Action Network Canada, said initially O’Regan’s Monday speech sounded good to her, talking about investing in a transition for workers, electricity grids and energy efficiency programs.

“Then I realized it was actually a speech about LNG disguised as a speech about renewable energy and I felt really duped,” she said.

She said she is trying to remain hopeful about the throne speech but is worried it will provide “token” acknowledgments or investments for clean energy “but then continues this trend that we’ve seen of the real priority and the real investment going toward the fossil fuel sector.”

Mia Rabson, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

police
Alberta RCMP wants you to receive your parcels

Last year, in all of 2019, there were over 4,000 occurrences of mail theft within Alberta RCMP jurisdiction

SARS-CoV-2 virus particles, which causes COVID-19, emerge from the surface of cells isolated from a patient in the U.S. and cultured in a lab in a 2020 electron microscope image. THE CANADIAN PRESS/AP-HO, National Institute of Allergy and Infectious Diseases - Rocky Mountain Laboratories
Alberta now has 17,743 active cases of COVID-19

Province now has 17,743 active cases

Stettler Food Bank is well stocked after generous donations during the holiday season. Contributed photo
Slight increase in demand at the Stettler Food Bank over recent weeks

The Stettler Food Bank is located in the basement of Stettler’s United Church

Sign
The Stettler Pheasant Festival reflects on community impact

The festival has seen people visit from all over western Canada and into the United States

Idyllic winter scenes are part of the atmosphere of the holiday season, and are depicted in many seasonal movies. How much do you know about holiday movies? Put your knowledge to the test. (Pixabay.com)
QUIZ: Test your knowledge of holiday movies and television specials

The festive season is a time for relaxing and enjoying some seasonal favourites

People line up at a COVID-19 assessment centre during the COVID-19 pandemic in Scarborough, Ont., on Wednesday, December 2, 2020. Toronto and Peel region continue to be in lockdown. THE CANADIAN PRESS/Nathan Denette
COVID-19 vaccine approval could be days away as pressures mount on health-care system

Many health officials in regions across the country have reported increasing pressures on hospitals

File Photo
Sylvan Lake Town Council squashes mask bylaw

The bylaw did not make it past first reading, after a 4-3 vote defeated the motion

A logo for Netflix on a remote control is seen in Portland, Ore.,Aug. 13, 2020. Experts in taxation and media say a plan announced Monday by the government will ultimately add to the cost of digital services and goods sold by foreign companies. THE CANADIAN PRESS/AP-Jenny Kane
‘Netflix tax’ for digital media likely to raise prices for consumers, experts say

The government says Canadian companies already collect those taxes when they make digital sales

Gaming content was big on YouTube in 2020. (Black Press Media files)
What did Canadians watch on Youtube during isolation? Workouts, bird feeders

Whether it was getting fit or ‘speaking moistly,’ Canadians had time to spare this year

A teacher places the finishing touches on the welcome sign at Hunter’s Glen Junior Public School which is part of the Toronto District School Board (TDSB) during the COVID-19 pandemic in Scarborough, Ont., on Sept. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Hindsight 2020: How do you preserve a year many Canadians would rather forget?

Figuring out how to preserve the story of the pandemic poses a series of challenges

Team Manitoba celebrate after defeating Team Ontario to win the Scotties Tournament of Hearts in Moose Jaw, Sask., Sunday, Feb. 23, 2020. Curling Canada wants Calgary’s Canada Olympic Park to be a curling hub for the season’s top events. THE CANADIAN PRESS/Jonathan Hayward
Calgary facility set to become curling hub during pandemic

Curling Canada has provisional approval for Calgary’s hub-city concept from Alberta Health

Ash and Lisa Van carry a freshly cut Christmas tree while wearing personal protective masks at a Christmas Tree Farm in Egbert, Ontario, Sunday, Nov. 29, 2020 THE CANADIAN PRESS/ Cole Burston
‘Everyone wants a tree and they want it now’: Christmas tree sales on pace for record

Anticipated demand for Christmas trees has sparked a rush by some to purchase more trees wholesale

Most Read