The LNG project carries a lot of potential for Alberta companies—from the oil and gas sector to manufacturing and every sector in between that is influenced by the energy industry—but what is LNG all about?
The LNG, or liquefied natural gas, project is a plan that has been in the works for a while now, but it’s finally beginning to see some progress. The project proposes the development of a liquefied natural gas production plant, followed soon after by the construction and operation of five other facilities. The facilities will be developed within one industrial park, and are planned to be developed in three phases over the next five years.
The facilities will be equipped to convert natural gas to liquefied natural gas for export to the Pacific Rim markets in Asia.
The first phase of the project has already received recent federal approval, despite the controversy that has developed as a result on behalf of Canada’s Indigenous peoples.
Trudeau and the federal government of Canada have approved the construction and operation of an LNG facility and marine terminal near Prince Rupert, British Columbia.
What are the benefits of the LNG project?
In short: resource development. The project is estimated to be worth close to $11 billion. It is expected to be one of the largest resource development projects in Canada, one that, with its assured export potential, will provide a significant breakthrough for Alberta—as well as Canada as a whole—in the wake of a long-lasting recession that has kept industry and the economy at a near-standstill for the past few years.
For Alberta in particular, the benefits are apparent. The federal approval of the project marks the first green light the industry has received in terms of a project that could have significant implications in an economy that has been plagued by uncertainty. Further, it shows that Trudeau and the Liberal government are willing to access new markets for energy resources, which creates a considerable amount of optimism for the energy industry—and that optimism is further boosted by the slight chance the LNG project represents that natural gas could once contribute to Alberta’s finances.
And, of course, the LNG project represents an opportunity for job creation, not only during the development of the facilities, but beyond, focusing on the increased production and export of liquefied natural gas. That job creation is important from an economic stance for the individuals who will be benefitted directly, but it also represents significant benefits for Alberta’s economy as a whole by creating employment opportunities that will enable Alberta to keep and employ its skilled workers.
The project’s approval, however, has been met by controversy. Canada’s Indigenous people see the LNG project as a continuation of the problems embedded in the past Harper government, and the approval as an indication of Trudeau’s breach of campaign promises that emphasized renewing nation-to-nation relationships with Canada’s Indigenous peoples.
The approval of the project came with 190 legally binding and scientifically determined conditions that were formed in consultation with Indigenous communities and which are designed to address sustainability issues and environmental impacts, including wetland management, marine fish and mammal habitats, migratory birds, human health, and concern for cultural heritage sites and long-term environmental monitoring.
