Calgary, Alberta, Nov. 07, 2022 (GLOBE NEWSWIRE) — Canadian liquefied pure fuel (LNG) exports to Asia could present the annual web emissions equal discount of eradicating each single automotive from Canadian roads, shows a brand new examine from international power analysis and consultancy agency, Wood Mackenzie.
As world leaders collect in Egypt for the COP27 world local weather summit Oct. 8-18, the examine, commissioned by the Canadian Energy Centre, demonstrates how pure fuel from Canada could assist power hungry Asian nations meet rising demand, whereas serving to decrease web international emissions by supplanting coal.
Given Canada’s huge pure fuel reserves, proximity to Asian markets and competitively priced product, Canada has a possibility to turn out to be a key provider for many years to come.
“In Canada, we have an abundance of natural gas. Someone will produce that natural gas – if it’s not Canada, someone else will,” mentioned Matthias Bloennigen, Wood Mackenzie’s Director Americas consulting.
“If we were to have more western Canadian LNG, that would allow a lot of the other sources to go to Europe. It’s like a domino.”
Canada at present has no skill to export LNG to international markets, however a handful of west coast initiatives could see Canada enter a world market that has grown considerably as nations search for options to Russian pure fuel.
LNG from Canada can be very aggressive with different suppliers due to decrease transportation prices to Asian markets, in addition to decrease facility emissions and decrease provide prices than lots of its opponents.
“The shorter shipping distance and lower resource breakevens means Canadian LNG is more competitive,” mentioned Bob Kubis, Wood Mackenzie’s Director – Americas Natural Gas, LNG & NGL Consulting.
“Canadian natural gas resources are developed in a regulatory environment where they’re less emitting than certain U.S. shale basins.”
The report’s authors examined three eventualities – a base case that considers average progress of Canada’s LNG trade, one during which Canada significantly accelerates its LNG capability, and one during which it stays largely stagnant.
In the bottom case, by 2050, Canada could account for almost 20% of the northeast Asia LNG market share, in contrast to 31.7% underneath the accelerated mannequin and slightly below 7% if Canada limits LNG progress.
Under the state of affairs during which Canada accelerates its LNG capability, serving to Asia change from coal to pure fuel, web emissions within the area could be decreased by a median of 188 MtCO₂E (metric tonnes of carbon dioxide equal) per yr, or about 29% of Canada’s complete annual greenhouse fuel emissions, the equal of eradicating all of in the present day’s automobiles from Canada’s roads. Should Canada restrict LNG progress, complete emissions in northeast Asia would proceed to rise by a median of 4 MtCO₂E per yr.
Other key takeaways from the report
- Examining two separate eventualities for international major power demand, pure fuel will keep fixed at 24% of the power combine from 2020 to 2050 underneath the bottom case, whereas underneath the web zero case it can solely drop to 22% of the power combine by 2050.
- Asia now accounts for greater than two-thirds (67%) of worldwide LNG demand and is anticipated to develop to 300 mtpa (million tonnes each year), or about 73% of complete international demand, by 2050 due to rising financial and inhabitants progress, the necessity to change declining home provide, and to decarbonize the present energy provide.
- By 2050, power demand from Asian nations is anticipated to account for 47% of the worldwide complete, with China making up greater than half of that.
- A world LNG demand hole of 150 mtpa is anticipated by 2035 and Canada, if at present deliberate west coast initiatives come on-line by 2035, could present up to 59 mtpa to assist tackle the shortfall underneath a state of affairs during which Canada accelerates its LNG capability.
With the world gripped by a world power disaster, many countries in each Asia and Europe have moved again to coal, among the many dirtiest of fossil fuels, in an effort to guarantee dependable energy. Canadian LNG is a cleaner resolution that could have an actual measurable impression on international emissions by decreasing dependency on coal over the medium-term.
Meanwhile, the CEC has additionally launched a digital media marketing campaign throughout COP27 focusing on delegates with the message that Canada’s oil sands trade has “accepted the challenge” of reaching web zero greenhouse fuel emissions by 2050.
The marketing campaign consists of on-line show banner adverts in Egypt in addition to print adverts within the New York Times worldwide version, which can seem in 190,000 papers. The adverts will direct individuals to www.oilsandsnetzero.ca, which can spotlight the essential position oil and fuel performs in assembly present and future international power demand, and the way Canada’s oil and fuel trade is the provider of alternative for assembly the world’s rising power wants.
Central to this effort is the Pathways Alliance, a coalition of Canada’s six largest oil sands corporations, accounting for 95% of manufacturing, which have collectively dedicated to attain web zero emissions by 2050. Together they’re growing one of many world’s largest carbon seize and storage initiatives, investing greater than $24 billion in CCS and different emissions discount applied sciences by 2030. The objective is to remove 22 million tonnes of emissions per yr by 2030.
The $136,000 marketing campaign focuses on this world-leading collaboration, and can run all through the convention. Visit www.canadianenergycentre.ca for extra info.
The Canadian Energy Centre is an arm’s-length company established by the Government of Alberta to advance Canada because the provider of alternative for the world’s rising demand of responsibly produced power. It is essentially funded by Alberta’s power trade by way of the provincial Technology Innovation and Emissions Reduction (TIER) fund. For extra info, go to www.canadianenergycentre.ca
- Report: Role of Canadian LNG in Asia
- COP27 commercial
