Canada ‘not interested’ in subsidising future LNG projects
Canada
OTTAWA, April 1, 2024 – Canada’s energy minister on Sunday said the country will not subsidise future LNG projects, calling such investments the “role of the private sector.”
Minister of Energy and Natural Resources Jonathan Wilkinson made the comments in an interview with local broadcaster CTV.
“The government is opposed to using government money to fund inefficient fossil fuel subsidies… We are not interested in investing in LNG facilities,” Wilkinson said.
The minister also emphasises that future LNG developments would need to source clean energy in order to align with Canada’s greenhouse gas emission reduction targets, but subsidies for this type of electrification would not be forthcoming.
Canada targets net-zero emissions from its national economy by 2050. Its interim goals for reducing emissions include bringing them 20% below 2005 levels (of 670 megatonnes CO2e) by 2026.
The Shell-led LNG Canada project, located in Kitimat, BC, is set to become Canada’s first large-scale LNG export facility once complete, with first exports targeted by 2025. At a cost of around USD 35.6 billion, the project is the largest-ever private investment in the country.
Seven other LNG facilities are under development across the country with a combined production potential of 50.4 million tonnes per year.
Photo of the LNG Canada project courtesy of LNG Canada.
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