All Canadians stand to benefit from our country’s natural gas

It’s easy to take for granted how simple it is to flip a switch or turn a knob to start our stoves. But across the world, an estimated three billion people still cook with polluting fuels like kerosene, wood, charcoal and bio waste.

Canada’s abundant natural gas resources can make a big difference in addressing energy poverty. And that presents a huge export opportunity, which is a benefit for all Canadians. Let’s dig in a bit deeper.

 

8 important facts about Canadian natural gas

 

  1. Global demand for natural gas is growing. And Canada has an abundance of natural gas. In fact, we are the fourth largest producer of natural gas in the world and we have enormous reserves.
  2. Natural gas is the cleanest burning fossil fuel. In Canada, it’s mostly used for heating and cooking, and as a fuel source for generating electricity. Natural gas is also a feedstock that’s used in the petrochemical industry to make plastics.
  3. When it’s used to generate electricity, natural gas produces up to 50 per cent less carbon dioxide than coal. So, it has the potential to play a major role in the global transition to cleaner energy, especially in some countries in Asia where coal is still the main fuel source for power generation.
  4. The United States is currently the only customer for Canada’s natural gas. In 2018, 46 per cent of all the natural gas produced in Canada went to the U.S., with a total export value of $6.1 billion.
  5. Canada’s market position as a supplier of natural gas to the U.S. changed in the past decade. That’s because the U.S. increased developing its own unconventional natural gas Between 2007 and 2018, Canadian natural gas exports to the U.S. went from 5 trillion cubic feet to 2.9 trillion cubic feet. And, natural gas prices were also severely affected by the increase in U.S. production. Today, prices are the lowest we’ve seen in decades.
  6. For Canada to get the full value from our natural gas resources, we must limit our reliance on the U.S. by finding ways to get our gas to markets in Asia. That’s the thinking behind projects to convert natural gas to liquified natural gas (LNG) for export to countries that need to replace higher-emission fuels.
  7. The estimated annual economic impact of Canada’s LNG industry includes a contribution of about $4.2 billion to our gross domestic product (GDP).
  8. Pipelines are critical to Canada’s LNG industry. They’re needed to safely transport natural gas to processing facilities where it’s processed for transport overseas by special tankers.

 

All Canadians stand to benefit from the LNG industry in Canada. The Canadian Association of Petroleum Producers estimates an annual $340 million in government revenues (corporate, personal, indirect taxes and royalties) for provincial and federal governments. Plus, there are many global benefits that natural gas can bring as the world energy mix evolves in the coming decades. It’s a critical opportunity for Canada (and the world) – and is enabled through the safe and responsible transportation provided by Canada’s transmission pipelines.

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