LNG Proponents Push Back Against Environmental Fears

Canadian liquefied natural gas (LNG) projects are facing attacks from environmental groups who claim that the industry is not clean and will lead to a glut of supply. However, experts disagree, citing studies that show LNG emits fewer emissions than coal power generation.

The International Energy Agency (IEA) expects the rate of global supply growth to accelerate in 2026 to more than 7%, leading to lower prices for LNG. But this is seen as an opportunity rather than a threat by market watchers, who believe it will incentivize additional demand in price-sensitive consumers.

QatarEnergy's CEO Saad al-Kaabi and Shell's CEO Wael Sawan both agree that growing electricity demand from AI and data centres, along with rising LNG use in Asia, could turn the anticipated supply glut into a real shortage by 2030. Meanwhile, Prime Minister Mark Carney predicts Canada will export 50 million tonnes per year by 2030.

Environmental groups claim that LNG is bad for the climate and emits as much greenhouse gas (GHG) as coal. However, other studies find that LNG really is cleaner than burning coal for power generation. The IEA says natural-gas power produces 50% fewer emissions than coal power even when fugitive methane emissions are taken into account.

The BC-based First Nations Natural Gas Alliance adds that BC liquefied natural gas is and will be even cleaner than any LNG tested in the studies. Woodfibre LNG aims to become a net zero emitter by 2027, while the Haisla Nation's Cedar LNG project promises to be one of the lowest carbon intensity LNG facilities in the world.

Canadian LNG developers have long talked about their LNG replacing coal overseas. While there is no evidence that our new and limited LNG exports are directly replacing coal, lower prices for LNG could lead to more use of it instead of coal to generate electricity.