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

COVID
Red Deer down to 313 active cases of COVID-19

Alberta reports an additional 411 COVID-19 cases

THE CANADIAN PRESS/Alex Panetta
Economists “cautiously hopeful” for economic recovery in Alberta

Charles St. Arnaud says Alberta’s recovery will rebound along with roll-out of the COVID-19 vaccine

Alberta’s chief medical officer of health Dr. Deena Hinshaw acknowledged that Friday would be one year since the first case of COVID-19 was identified in the province. (photography by Chris Schwarz/Government of Alberta)
Three more Red Deer COVID-19 deaths, 331 active cases in Alberta

Red Deer is down to 362 active cases of the virus

Image curtesy Metro Creative Connection
County of Wetaskiwin addresses unpaid oil and gas taxes

The County of Wetaskiwin is addressing unpaid oil and gas taxes and… Continue reading

Caitlin Kraft, the sister of Jeffery Kraft, stands third from the left, holding a sign calling for the maximum sentence for Campbell, who is charged with manslaughter. (Photo by Paul Cowley)
UPDATED: Judge again rejects submission of 7-year sentence for slaying of Kraft

Tyler John Campbell charged with second-degree murder for December 2019 homicide

Supporters rally outside court as Pastor James Coates of GraceLife Church is in court to appeal bail conditions, after he was arrested for holding day services in violation of COVID-19 rules, in Edmonton, Alta., on Thursday March 4, 2021. THE CANADIAN PRESS/Jason Franson
‘Law remains valid:’ Pastor accused of violating health orders to remain in jail

The Justice Centre for Constitutional Freedoms is representing the pastor

A decommissioned pumpjack is shown at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. The Alberta Energy Regulator says it is suspending all of the licences held by an oil and gas producer with more than 2,200 wells and 2,100 pipelines after it failed to bring its operations into compliance. THE CANADIAN PRESS/Jeff McIntosh
Alberta Energy Regulator suspends licences of oil and gas producer that owes $67M

The company is being asked to comply with past orders to clean up historic spills and contamination

Prime Minister Justin Trudeau holds a press conference in Ottawa Friday, March 5, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau holds firm on premiers’ health-care funding demands, COVID-19 aid comes first

Premiers argue that the current amount doesn’t keep pace with yearly cost increases of about five per cent

Seniors in the 65-unit Piper Creek Lodge are among those waiting for COVID-19 vaccinations. (File photo by Advocate staff)
Central Alberta senior lodges anxiously waiting for COVID-19 vaccinations

“Should be at the front of the line, not the back of the line”

Pictured here is Stettler’s Jenner Smith with a guide dog from Aspen Service Dogs. An online auction will be running soon to help raise funds for Jenner to receive his very own service dog later this year. Jenner, who is four years old, was diagnosed with Autism Spectrum Disorder in 2019. photo submitted
An online auction is planned to raise funds for a service dog for a Stettler family

Jenner Smith, four, was diagnosed with Autism Spectrum Disorder in 2019

Walter Gretzky father of hockey hall-of-famer Wayne Gretzky waves to fans as the Buffalo Sabres play against the Toronto Maple Leafs during third period NHL hockey action in Toronto on Tuesday, Jan. 17, 2017. THE CANADIAN PRESS/Nathan Denette
Walter Gretzky, father of the Great One, dies at 82

Canada’s hockey dad had battled Parkinson’s disease and other health issues

This Dec. 2, 2020 photo provided by Johnson & Johnson shows vials of its Janssen subsidiary’s COVID-19 vaccine in the United States. THE CANADIAN PRESS/AP-Johnson & Johnson via AP
Canada approves Johnson & Johnson’s 1-shot COVID-19 vaccine

It is the 4th vaccine approved in Canada and the 1st that requires just a single dose

Most Read