War in Ukraine proves value of LNG Canada, CEO tells global gas conference in Vancouver
VANCOUVER – Volatility in the supply and price of natural gas worldwide since the Russian invasion of Ukraine demonstrates the value of the LNG Canada project as a source of “affordable, reliable” and “responsibly sourced” liquefied natural gas, the project’s CEO said.
“I can’t think of a country better placed to supply Asia with just that than Canada,” said Jason Klein of LNG Canada, the massive export facility currently under construction in Kitimat, BC.
Klein said the $40 billion project is nearly 85 percent complete and will aim to compete globally, not only on price, but also on environmental and social issues.
Klein made the remarks at the opening of the LNG 2023 conference in Vancouver, an event originally scheduled for last year in the Russian city of St. Petersburg before being moved to BC due to the war in Ukraine.
That situation, Klein said, is perhaps the best example of the value of Canadian energy and its stability on the global stage.
“I think it’s a great opportunity to reflect on the fact that the very act that got us to Vancouver today is the same one that’s rocking global energy markets,” Klein said.
The LNG 2023 conference runs until Thursday and attracts multinational energy companies such as energy giants Petronas, BP and ConocoPhillips, as well as government representatives from key producing countries such as Qatar. The conference is held every three years.
Organizers said the discussion at the conference would be about the economic impact of market turmoil. The disappearance of Russia, the world’s largest natural gas exporter, from Western supply chains has been at the forefront of several conference panels.
Experts said that while Europe bore the brunt of the loss of Russian gas supplies, Asia also suffered as European buyers drove up prices for liquefied natural gas worldwide, and many countries struggled to secure supplies.
Sarah Bairstow, president and chief commercial officer of US LNG producer Mexico Pacific, said this was why the industry needed to keep its focus on Asia, which she described as the “demand driver” for the commodity.
“What we’ve seen as a result of the last 12-15 months is buyers in Asia Pacific … they know they need a base gas supply not only for their own generation, but also for their own energy transition goals,” Bairstow told the conference . “And they’re really trying to be at the forefront of Europe.”
Canadian conference organizers said that, in addition to stability, First Nations economic reconciliation is an important part of what the industry wants to present to the global natural gas industry.
First Nations LNG Alliance President Crystal Smith told the conference that more extensive indigenous community involvement is on the way in projects such as the planned Cedar LNG facility in Kitimat.
“I think about where our community was even 10 years ago in regards to our participation in our economies,” Smith said of Haisla Nation’s ownership of the project.
“We essentially sat on the sidelines watching everyone in our territory and the surrounding area itself… so far I can’t help but smile and get absolutely emotional because I am majority owner of Cedar LNG.”
This report from The Canadian Press was first published on July 10, 2023.
