Canada’s federal government has no plans to provide subsidies for future liquefied natural gas (LNG) projects, including funds to electrify LNG facilities currently being built, according to the country’s energy minister.
In a television interview on Sunday, Energy and Natural Resources Minister Jonathan Wilkinson clearly said the private sector needs to assess the business case and finance any new LNG projects itself.
“The government is opposed to using government money to fund inefficient fossil fuel subsidies,” Wilkinson told host Vassy Kapelos in an interview with CTV Question Period. “We are not interested in investing in LNG facilities. That’s the role of the private sector.”
The minister’s comments come amid growing global interest in purchasing Canadian LNG as an alternative energy source, with countries like Greece, Germany and Japan voicing their desires. However, the Trudeau government remains firm that any LNG projects must align with Canada’s 2030 emissions reduction targets and goal of achieving net-zero emissions from the sector by that timeline.
Also read: Biden Administration Halts Approvals of New LNG Export Plants
Wilkinson stressed that meeting the 2030 target will require LNG production to run on clean electricity rather than burning natural gas itself during the liquefaction process. He cited planned regulations to cut oil and gas methane emissions by at least 75% from 2012 levels by 2030 as another requirement for the LNG industry.
While leaving the door open to private LNG investment, the federal stance puts it at odds with some provinces keen to expand projects. Last week, New Brunswick’s premier asked Ottawa to allow LNG exports to Europe in exchange for scrapping the federal carbon tax in his province. Wilkinson responded that New Brunswick can proceed on its own if it wishes.
“Certainly Premier Higgs, who has gas resources in New Brunswick, if he chooses to develop them, could look to actually develop a project that could ship LNG to Europe, but obviously that would need to be done in a manner that’s consistent with New Brunswick’s climate plan,” the energy minister said.
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