Latest news with #CedarLNG
Canada Standard
20-05-2025
- Business
- Canada Standard
B.C.'s LNG Drive Weakens Climate Rules, Pushes Up Local Gas Prices, New Report Warns
Although Donald Trump's trade wars have created a moment of opportunity for liquefied natural gas (LNG) exports to Asia, British Columbia is paying the price in the form of weakened climate regulations, higher gas prices, an overstretched electricity system, and future economic uncertainty, a new report warns. "For the past 15 years, the development of a liquefied natural gas (LNG) industry has been a dream of B.C. politicians who have envisioned the streets of the province's economic future paved with the gold of gas exports," the Canadian Centre for Policy Alternatives (CCPA) writes. And when the new LNG Canada facility in Kitimat ships its first cargo overseas, the moment will be "fortuitous" for the province and Canada as a whole. "LNG Canada connects gas from Western Canada-where prices are low and dependence on the U.S. high-to world market prices, largely in Asia," the report explains. "The U.S. LNG industry, meanwhile, has been slapped with tariffs by China, a key export destination for LNG Canada, as part of the broader trade war." So in addition to two smaller LNG terminals, Woodfibre LNG and Cedar LNG, that are both in development, and a final investment decision pending on the second phase of the LNG Canada project, the trade war has both orders of government "courting additional LNG developments, and betting on their multi-billion-dollar investments to further boost Canada's export capacity to Asia." However, "whether LNG can deliver on its promise is questionable, in light of the challenging economics of the industry-including other new LNG facilities under development-and due to the global energy transition away from fossil fuels." View our latest digests The report details six major concerns with LNG development: B.C. is weakening its already failed climate targets to make room for LNG, handing developers a two-year exemption from its industrial carbon tax that will save them tens of millions of dollars per year if it becomes permanent. "Ostensibly part of the government's response to the Trump tariffs, B.C. is fast-tracking LNG and related infrastructure projects, and is relaxing its previous requirement that LNG facilities have a plan to be net zero emissions by 2030," CCPA writes. Powering the industry's "extremely energy intensive" LNG facilities will push the provincial grid to its limits. If the plants run on gas, they'll drive up emissions. If they're electrified, the utility will have to build new generation and transmission that would otherwise be available to support B.C.'s decarbonization efforts. LNG producers won't commit to electrification without "substantial subsidies", with the result that "other residential and business customers will see their electricity bills go up". LNG production in B.C. will drive up consumer prices by 25% this year compared to 2024, and by 49% in 2026, although those higher costs will initially be offset by the elimination of the consumer carbon price. With the International Energy Agency and other agencies projecting that global gas demand is approaching its peak, LNG economics in B.C. will be "challenging due to vagaries of global markets and the high cost of liquefaction and gas pipelines." All of these problems will worsen as more LNG production comes onstream. "The danger is that the B.C. government abandons its climate policies for the LNG sector, including electrification and carbon pricing, and instead opts for higher GHG emissions and sacrificing its long-run GHG emission reduction targets," the report concludes. "Doubling down on fossil fuel exports at a time of climate emergency is folly and is also costly from a bottom-line perspective." Report author and CCPA Senior Economist Marc Lee traced B.C.'s cross-party commitment to LNG development back to the former provincial Liberal government of then-premier Christy Clark, and to Clark's taunt that the opposition NDP was "the party of no" on resource development, from LNG to the controversial Site C hydropower megaproject. "I think that really stung . So they made a decision that they weren't going to pick a fight with big industry, particularly the oil and gas industry," Lee told The Energy Mix. Instead, "they wrapped themselves in the aura of northern economic development, supporting the resource industry, trying to link Indigenous rights and issues into that conversation, and not really taking climate all that seriously." For successive NDP governments in B.C., "the politics is more about now, about jobs and labour supporters and economic development, then on the climate stuff we can tinker a little bit here and there," he said. "Not that they don't care, but my sense is that if no one else is doing this, they're asking why B.C. should be ahead of the rest of the pack." Those discussions make British Columbia "a microcosm of every cabinet table around the world in countries that have fossil fuel reserves," he added. The risk is that if a wealthy jurisdiction like B.C. doesn't lead, no one else will. But by seizing that lead, the province would be "doing ourselves a favour by developing capabilities and competencies and technologies that have value in other parts of the world, that position our province to be leaders in the economy of the future." Source: The Energy Mix
Winnipeg Free Press
09-05-2025
- Business
- Winnipeg Free Press
Pembina Pipeline sees enough demand for potential expansion to Cedar LNG project
CALGARY – The chief executive of Pembina Pipeline Corp. says he believes there will be enough demand to support an expansion to the Cedar LNG project on the B.C. coast as it looks to sign on more shippers for the first phase now in early construction. Pembina has shortlisted the preferred counterparties, and has begun negotiating definitive agreements, Scott Burrows told analysts on a conference call Friday to discuss his company's first-quarter results. 'They're big, complicated agreements. We'll do the right deal for Pembina, not the fastest deal for Pembina,' he said. The US$4-billion floating liquefied natural gas export terminal in Kitimat, B.C., is a partnership between Pembina and the Haisla Nation. The first phase of the project was given the green light almost a year ago and is on track to come into service in late 2028. The cargoes of LNG — gas that has been chilled into a liquid state so it can be transported overseas on specialized tankers — will be bound for high-demand Asian markets. ARC Resources Ltd. is to supply gas for about half of the plant's capacity from the Montney shale in northeastern B.C. and northwestern Alberta. Pembina has been looking to contract out its 1.5-millon-tonne-per-year share of capacity, and Burrows said talks are going well. Based on conversations around bringing more producers into the first phase, Burrows said it appears a second phase would be welcome. 'Certainly the gas demand is there,' he said. 'Based on early-stage negotiations on Cedar capacity, we believe there is demand for a Cedar 2.' A question mark, however, would be whether there would be enough pipeline capacity to get the gas from inland to the coast, he added. There are two other B.C. LNG projects in the works. Also in Kitimat, LNG Canada, a partnership between Shell and four Asian partners, is slated to start delivering shipments in the next few months. Meanwhile, Woodfibre LNG, owned by Pacific Energy Corp. and Enbridge Inc., is being built near Squamish, B.C., and is on track to be complete in 2027. Also Friday, Pembina said it is not seeing a significant near-term financial impact related to Dow Inc.'s delay of a net-zero petrochemical project northeast of Edmonton. Dow said last month it is still committed to the nearly $9-billion Path2Zero project in Fort Saskatchewan, Alta., but that it has decided to push back the timeline due to weak market conditions. Pembina was to supply and transport ethane to the project. 'To date, Pembina has not spent material capital to support the ethane supply agreement and will continue to progress these projects, but may now have more time available to execute them,' Burrows said. On Thursday, Pembina reported earnings of $502 million for the three months ended March 31, up from $438 million during the same period of 2024. That amounted to 80 cents per diluted share versus 73 cents a year earlier. Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. Revenue was $2.28 billion, an increase from $1.54 billion. The Calgary-based company says it doesn't expect any impact from U.S. tariffs on energy imports this year given much of its business is under contract. It says it has also not seen any significant decline in activity from producers in Western Canada who use Pembina's system to get their oil and gas to market. This report by The Canadian Press was first published May 9, 2025. Companies in this story: (TSX: PPL)
Globe and Mail
16-04-2025
- Business
- Globe and Mail
Invest in Canada with these ETFs through the Trump Tariffs
Following April 2nd, the day on which President Trump's reciprocal tariffs were announced, many nations across the globe are holding their ground and indicating the responsive actions they are willing enact. Most U.S. tariffs on Canada remain unchanged: 25% on all goods except those covered by NAFTA. Energy and potash face a lower 10% tariff, while Canadian steel and aluminum still incur a 25% levy. Canadian Prime Minister Mark Carney has vocalized his willingness to take responsive actions against President Trump's tariffs, stating, 'We will fight the U.S. tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada,' at a news conference. However, the Prime Minister is also seemingly taking proactive measures to remove and/or minimize trade barriers between the provinces, as detailed in a memo released by the Prime Minister following a meeting with provincial and territorial premiers. As detailed in the memo, the Prime Minister and provincial leaders aim to unlock Canada's economic industries through a suite of initiatives that will leverage the country's natural resources and drive investment, thereby creating jobs and fostering economic growth. Some of these initiatives include: The creation of a First Mile Fund, building transportation networks to connect energy extraction sites to rail lines and roads. By providing capital to finance these key infrastructure projects across the country, the Government of Canada will expedite project construction and create a more integrated and accessible Canadian economy. A 'one window' approval process, streamlining approvals for large-scale, national-interest infrastructure projects. This new measure will create clear, predictable, and efficient review processes–with the highest standards for safety, environmental protection, and Indigenous consultation–and reduce uncertainty for investors. A contribution agreement of up to $200 million toward the construction, commissioning, and operation of a new Indigenous majority-owned Cedar LNG processing facility. A partnership between the Haisla Nation and the Pembina Pipeline Corporation, this project will create hundreds of highly skilled construction and trades jobs, generate over $275 million in economic growth, and get Canadian energy to domestic and international markets. A $175 million investment in the Hudson Bay Railway and at the Port of Churchill, in Manitoba. This critical investment in Canadian trade and railway infrastructure will expand and open new transportation corridors, bolster economic growth and reconciliation in the Canadian Arctic and North, and help get Canadian products to global markets. Investing in Canadian Industry Against the backdrop of a trade war with the U.S., Canadians' sense of patriotism has risen, with many consumers seeking to purchase goods made in Canada. Simultaneously, firms are showcasing their support for sentiment. For example, Loblaw Companies, the nation's largest retailer with multiple grocery chain banners, is identifying made-in-Canada products in-store with a maple leaf. On the other hand, a 'T' symbol — standing for 'tariffs' — has been affixed to products sourced from the United States. In the realm of investing, Global X Canada has recently launched a 'Best of Canada ETF' suite, offering investors access to leading Canadian companies within their respective industries. Through these solutions, Canadian investors have turnkey access to firms that are the nation's economic leaders. The ETFs within the suite are: The Global X Equal Weight Canadian Telecommunications Index ETF (Ticker: RING) seeks to replicate the performance of an equal-weighted index, the Mirae Asset Equal Weight Canadian Telecommunications Index, which is designed to provide exposure to the largest Canadian telecommunication companies. The Global X Equal Weight Canadian Groceries & Staples Index ETF (Ticker: MART) seeks to replicate the performance of an equal-weighted index, the Mirae Asset Equal Weight Canadian Groceries & Staples Index, which is designed to provide exposure to the largest Canadian food and staples retail companies. The Global X Equal Weight Canadian Insurance Index ETF (Ticker: SAFE) seeks to replicate the performance of the Mirae Asset Equal Weight Canadian Insurance Index, an equal-weighted index designed to provide exposure to the largest Canadian insurance companies. The Global X Equal Weight Canadian Banks Index ETF (Ticker: HBNK) seeks to replicate the performance of an index, the Solactive Equal Weight Canada Banks Index, an equal-weighted equity index of diversified Canadian banks. The Global X Equal Weight Canadian Oil & Gas Index ETF (Ticker: NRGY) seeks to replicate the performance of the Mirae Asset Equal Weight Canadian Oil & Gas Index, an equal-weighted index designed to provide exposure to the largest Canadian oil and gas companies. The Global X Equal Weight Canadian Pipelines Index ETF (Ticker: PPLN) seeks to replicate the performance of an equal-weighted index, the Mirae Asset Equal Weight Canadian Pipeline Index, which is designed to provide exposure to the largest Canadian Pipeline companies. The Global X Equal Weight Canadian Utilities Index ETF (Ticker: UTIL) seeks to replicate the performance of the Mirae Asset Equal Weight Canadian Utilities Index, an equal-weighted index designed to provide exposure to the largest Canadian utility companies. For Canadian investors looking to invest in the nation's leading industries, Global X's Best of Canada ETF suite provides a suitable avenue for doing so. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
CBC
21-03-2025
- Business
- CBC
Feds to contribute up to $200M for Haisla-led project to ship liquefied natural gas to Asia
Social Sharing The federal government says it will contribute up to $200 million to a floating liquefied natural gas export facility off B.C.'s North Coast, saying it's an important part of diversifying Canada's economy. The project is Cedar LNG, a collaboration between Calgary-based Pembina Pipeline Corp. and the Haisla First Nation, and is slated to be the largest Indigenous majority-owned infrastructure project in Canadian history, stakeholders say. Originally valued at $3 billion, the federal government now says it will cost an estimated $5.9 billion to build, creating 300 jobs during construction and 100 full-time jobs once operational. "The need to build a resilient economy with new export opportunities for Canadian energy suppliers has never been clearer," Jonathan Wilkinson, the federal energy and natural resources minister, said in a statement Friday. "Our international partners are looking for a reliable supplier of low-carbon energy sources, and Canada will be there to enable communities." Cedar LNG has also been identified by the B.C. government as one of several projects it wants to fast-track in order to stave off the threat imposed by U.S. tariffs. The project consists of a floating natural gas liquefaction plant and marine export terminal located in the Douglas Channel near Kitimaat Village, a Haisla community approximately 380 kilometres directly west of Prince George, B.C. Scheduled to be in service in late 2028, it will have the capacity to liquefy approximately 3.3 million tonnes of natural gas per year for export to Asian markets. Crystal Smith, chief councillor of the Haisla Nation, said the project fits into her community's values of sustainability because it will have "one of the lowest carbon footprints in the world." WATCH | Chief Councillor Crystal Smith on the Cedar LNG project: B.C. approves first Indigenous-owned LNG project in Canada 2 years ago Duration 1:57 B.C. has approved the first Indigenous-owned natural gas export facility in the world. The Haisla First Nation will own the $3-billion Cedar LNG facility in Kitimat, but it still needs federal approval. The plant itself is meant to be powered by hydroelectricity, and the natural gas will be fed in for liquefying via an eight kilometre-long pipeline spur connected to the main Coastal GasLink pipeline, which travels across British Columbia from near Dawson Creek, passing through Wet'suwet'en territory and which has been subject to widespread protests and legal challenges. While proponents of a Canadian LNG industry say liquefied natural gas from Canada could help reduce global greenhouse gas emissions by replacing coal in countries that still rely on the dirtier fuel, environmentalists argue LNG creates its own emissions through the liquefaction and transportation process, as well as through the drilling and flaring of natural gas. They say building massive LNG terminals that require huge upfront capital investments "locks in" future greenhouse gas emissions at a time when the world needs to be planning for a lower-carbon future.
Yahoo
17-03-2025
- Business
- Yahoo
ExxonMobil Australia, Woodside approve $221m for Turrum phase three gas project
ExxonMobil Australia, in partnership with Woodside Energy, has announced the final investment decision (FID) for the Turrum phase three gas project. The joint venture (JV) aims to tap into underdeveloped gas resources in the Gippsland Basin with an investment of A$350m ($221m). The project, which is expected to address potential gas shortages on Australia's east coast, involves drilling five new wells in the Turrum and North Turrum gas fields. The decision comes at a critical time as Australia's competition regulator has warned of a gas supply shortfall from 2027, which could necessitate gas imports due to structural declines and uncertainties in future investments. In an emailed response to Reuters, ExxonMobil Australia chair Simon Younger said: "While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030." The Gippsland Basin JV is shared equally between Esso Australia Resources and Woodside Energy (Bass Strait), with Esso Australia taking the lead in operations. In a separate statement, Woodside's executive vice-president and chief operating officer for its Australian operations, Liz Westcott, was quoted by the news agency as saying: "The Turrum Phase 3 project, and the recently approved Kipper 1B project, will unlock additional gas that is needed to avoid future shortfalls. "Every molecule of gas Woodside supplies from the Bass Strait fields is sold into the Australian domestic market for local manufacturers, power generators and homes." Also, ExxonMobil affiliate ExxonMobil LNG Asia Pacific has entered a long-term sale and purchase agreement for the supply of liquefied natural gas (LNG). According to the agreement, ExxonMobil will purchase approximately 1.5 million tonnes per annum of ARC's LNG from the Cedar LNG project. "ExxonMobil Australia, Woodside approve $221m for Turrum phase three gas project" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
