April 29, 2022
The Right Honourable Justin Trudeau
Prime Minister of Canada
80 Wellington Street
Ottawa, Ontario K1A 0A3
Subject: Update on Positioning Canada to lead the Global Gas Conversation
Dear Prime Minister,
Further to our letter of March 25th on addressing global energy needs in the midst of war in Europe, we at the Canadian Gas Association (CGA) wanted to update you on our efforts.
Since we wrote last,
– we have been in contact with almost a dozen EU members to discuss their long-term gaseous energy needs and how Canada can help to meet them;
– we have established an informal network of gas producers, transmission companies, distribution companies and suppliers to review the information we receive from the Europeans and to develop a strategy – short, medium and long-term;
– we are documenting the Canadian gas energy story more clearly. It is truly a remarkable one that deserves more attention. And with recent public opinion research showing Canadians want Canada and Canadian natural gas to be helping Europe, we want to make sure the story is well understood; and
– we have been asked to host the LNG 2023 Conference – the largest global LNG event. Held every three years, the event was to have been in St Petersburg, but will now be in in Vancouver, July 10-14, 2023.
Our progress in recent weeks is making clear several points:
The world needs natural gas: No one knows how quickly technology will evolve but we can point to global experts like the International Energy Agency who say a fast-developing world will need enormous quantities of natural gas for decades to come. The estimated one billion people living in poverty today, the two billion more using inefficient and high-emission energy sources like dung and wood, and the two billion more expected through population growth over the next few decades, all deserve the opportunity to benefit from the affordable, reliable, clean natural gas that we in Canada have today. We can deliver that opportunity.
Canada produces some of the lowest emission natural gas in the world: Our performance standards rank extremely highly in the world and are constantly improving. A molecule of Canadian natural gas has a lower GHG footprint than a molecule from almost anywhere else in the world. This is a credit to the environmental standards of the Canadian industry – producers, transmission companies and distributors –in how they produce and move energy. We believe we have an opportunity to be delivering these cleaner molecules to global markets to help reduce global emissions. The alternative, if we don’t export, is that the world will use more energy from countries with lower environmental standards producing higher emissions. Those countries aren’t doing the work Canada is to provide even cleaner gas – a long-term benefit for all.
The natural gas affordability advantage is central to energy security: Energy prices are rising the world over. There are many complicated causes, but the biggest consequence is simple: instability for countries and the world at large. The more that countries like Canada develop our resources and technologies to meet global needs the more we can help keep energy clean, reliable, and affordable for all. With one of the world’s largest gas resources, exceptional environmental performance, and a commitment to continuous innovation in fuels and systems, we should be the supplier of choice.
Canada’s gas sector will lead in the development of new gaseous energies: Renewable natural gas, hydrogen, ammonia and any other low-emission gaseous fuel technologies and options are being developed by Canada’s natural gas sector today. It is the gas sector expertise that is most likely to ensure these can emerge as reliable, affordable options for the future. The export of Canadian gas today opens the door to the export of other fuels and technologies tomorrow, if our industry is given the opportunity.
In conclusion, I would note the commitments made by the United States – including a 2030 goal of an incremental 50 billion cubic meters of LNG production. The Canadian industry wants to be able to make similar commitments. Canada’s natural gas sector is seized with the current global reality and is determined to try to help.
We remain committed to and welcome opportunities to work with the Government of Canada on this important priority, be it through the Canada-EU working group on green transition and LNG, or by whatever other means appear.
Timothy M. Egan
President & CEO, Canadian Gas Association
Chair, NGIF Capital Corporation