Printer-friendly version   



 Nov. 19, 2012

Ministry of Energy, Mines and Natural Gas


Liquefied Natural Gas (LNG) an excellent investment in British Columbia’s future


VICTORIA – Over the next 20 years, global demand for natural gas is expected to rise dramatically, fuelled by rapid economic growth in Asia. 


British Columbia is well positioned to compete for a share of that lucrative market by creating an LNG industry which will turn traditional natural gas into a stable, shippable form.


Developing LNG export potential in B.C. is an excellent investment in our future. It will generate thousands of jobs and billions of dollars in new investment. That will mean more revenues for government to help future generations of British Columbians.



·         BC's shale resource is approximately 1,200 trillion cubic feet (tcf).

·         Five larger LNG plants would require four tcf per year for production. Based on this estimate, 400 tcf could support LNG exports for about 100 years.

·         As technology evolves, the Province expects additional untapped deposits of natural gas to come into play.

·         Industry estimates the Montney and Horn River Basins contain 262 tcf of natural gas, which makes them two of North America’s most promising natural gas plays. A good portion of these two deposits are marketable. As technology improves, government is confident a greater proportion of these shale gas deposits will be available.



·         Presently, the Province is in the process of considering as many as five proposals for LNG projects. If all comes to fruition, the projects would contribute more than $1 trillion to the provincial economy over the next 30 years. 

·         Under the BC Jobs Plan, the Province is working towards three LNG plants becoming operation by 2020, with one up and running as early as 2015.

·         Presently two projects ­– Douglas Channel and Kitimat LNG – have received export licenses from the National Energy Board, and the Province anticipates at least one of these projects will be in a position to make an investment decision in 2013.  LNG Canada has also applied for an export licence.


Energy for LNG

·         The Province’s LNG strategy has committed to make power available for LNG development.  This will ensure B.C. is competitive and retains its climate and clean energy leadership, while keeping energy rates affordable for B.C. families and businesses. 


·         The Province and BC Hydro are working with LNG developers to lower anticipated greenhouse gas emissions by using electricity in LNG plants.


Jobs and the Economy

·         This fiscal year, government anticipates natural gas royalties will reach approximately $157 million, growing to an estimated $263 million next year, and $363 million in 2014/15.

·         The Canadian Energy Research Institute estimates direct employment in B.C.’s natural gas sector will grow to as many as 40,000 people by 2035, a significant increase from 12,000 people employed in the natural gas industry as of 2010.

·         An increase in natural gas jobs will support B.C. families, and strengthen local businesses and communities.


Benefits to All British Columbians

·         Revenue to the Province from natural gas is distributed to fund key public services including health care, education and social services which benefit all British Columbians.


Responsible Development

·         As the cleanest burning fossil fuel, natural gas is integral to a lower carbon-energy future for Canada and throughout North America, including broader use in transportation and power generation.

·         The provincial government remains committed to natural gas development within the existing framework of provincial and federal environmental regulations. Water, air, GHGs, land, wildlife and human health remain priorities.

·         The Province is confident that existing regulations dovetail with best practices, and can ensure responsible and safe industrial development.


Strong Regulatory Oversight

·         The Province and industry have put in place a mandatory online registry for chemicals used to free natural gas trapped in shale rock through a process known as hydraulic fracturing. B.C.’s government is optimistic other jurisdictions will follow its lead and implement similar measures.

·         To date, there has never been an incident of harm to groundwater from hydraulic fracturing operations within B.C. According to Alberta’s oil and gas regulator, there has never been a documented case of fracturing activities contaminating groundwater in that province either.

·         Provincial regulation and the industry’s operational practices will continue to evolve with changing technology, with an eye to being recognized as an international leader in natural gas development.

·         The Province has established a new tool to track water inflows in northeast B.C.  Government uses the information generated by the tool before issuing water permits.




Sandra Steilo

Media Relations

Ministry of Energy, Mines and Natural Gas

250 952-0617



Connect with the Province of B.C. at