OTTAWA, June 1, 2016 /CNW/ – A new report released today says major economic benefits and greenhouse gas (GHG) emissions reductions can occur by expanding the delivery of liquefied natural gas (LNG) to remote communities and industrial facilities in Canada.
In Canada, nearly 300 remote communities and dozens of large industrial facilities are not connected to the North American electrical grid or to natural gas distribution pipelines. Access to affordable and clean energy is a challenge for these communities and serves as a barrier to economic development and GHG emission reductions. Responsible development of Canada’s North means the best use of the dollars required. Affordable energy like LNG frees dollars from costlier energy alternatives, allowing local decision makers the freedom to dedicate these monies to other important priorities in their communities.
ICF International’s new report titled “Economic and GHG Emissions Benefits of LNG for Remote Markets in Canada” concludes that by 2025, at least 23 power generation and 58 industrial customers could convert to LNG resulting in, over the 25 year study period:
- $2.4 billion in energy cost savings for the LNG customers;
- a cumulative reduction of 11.1 million tonnes of CO2, equivalent to the annual CO2 production of over 2.3 million passenger vehicles; and
- the addition of more than $12.5 billion to Canada’s GDP, support of 118,000 net job-years, and an increase in government revenues by $4.5 billion.
The Vancouver Declaration, signed by Canada’s First Ministers identifies the need to identify alternative energy options for Indigenous and northern communities. CGA recommends that the Pan Canadian Climate Strategy recognize the role of LNG as an affordable, clean and reliable alternative energy choice.
“This report quantifies just how significant and meaningful an opportunity we have to reduce energy costs and emissions for communities and industry in Canada’s North by expanding LNG delivery and use. Natural gas utilities look forward to working with provincial and territorial governments, Indigenous communities, technology providers, and other stakeholders to look more closely at how to move forward and realize this opportunity,” said Timothy M. Egan, President and CEO of the Canadian Gas Association.
LNG is produced when pipeline quality natural gas is cooled to -162 degrees Celsius liquefying the gas and reducing its volume in order for it to be transported in storage tanks on trucks, ships, or rail to a regasification facility located near large industrial facilities (like mines) or communities in the North where it can be stored and used for heat or to generate power.
CGA is the voice of Canada’s natural gas distribution industry and its members are distribution companies, transmission companies, equipment manufacturers and other service providers. Natural gas has a central place in Canada’s energy mix meeting over 30 per cent of the country’s energy needs. Today over 6.6 million customers representing well over 20 million Canadians rely on natural gas for heat and power in homes, apartments, buildings, businesses, hospitals and schools.