Canada’s liquefied natural gas industry expected to create new job opportunities: experts
by CM Staff
The report analyzes the economic impact the LNG industry would have across the country
VANCOUVER — A new Conference Board of Canada Report estimates that the liquefied natural gas (LNG) industry in British Columbia could create 96,550 new jobs, boost total wages in Canada by over $6 billion, and increase Canada’s gross domestic product (GDP) by $11 billion every year.
“Canada’s LNG industry holds potential economic benefits for Canada,” said Roger Francis, director of sustainability at The Conference Board of Canada, in a prepared statement. “Under the scenario researched by the Conference Board of Canada, thousands of well-paying jobs could be created and billions of dollars in new revenue could be realized by governments across the country.”
The report, A Rising Tide: The Economic Impact of B.C.’s liquefied natural gas industry, examines potential economic impacts of growing Canada’s LNG industry to 56 million tonnes per annum by 2034 with the investment in infrastructure, additional LNG projects and the expansion of the $40 billion Phase 1 LNG Canada project in Kitimat, B.C.
The report analyzes the economic impact this investment would have across the country and the impact to the Canadian manufacturing, resource, tourism, finance, transportation, technology, arts and professional services sectors.
The report anticipates that LNG facilities will operate over an expected 40-year lifespan, providing economic growth, employment, taxes and royalty revenues to B.C., other western provinces, Ontario, Quebec and the federal government for decades to come.
“This report shows that by all of us working together — governments, industry, Indigenous nations, workers and communities — to responsibly build an LNG industry, we can provide a significant and much-needed economic boost to our country,” said Bryan Cox, president and CEO of the Canadian LNG Alliance, a prepared statement. “Importantly, Canada will make an outsized contribution to reducing global emissions and particulate matter, while investing in the critical infrastructure we need for our continued transition to a cleaner energy future.”
- Between 2020 and 2064, more than $92 billion in revenue could be generated for provinces and territories in Canada. Of this total, nearly $78 billion would accrue to British Columbia. Over $64 billion would be generated for the federal government in tax revenue.
- British Columbia’s portion would exceed $8 billion annually, an increase in the province’s GDP of more than 3%.
- Alberta’s GDP would see an annual increase of $1.6 billion, or just over 0.5%.
- For Ontario, the figure would be $1 billion, or just over 0.1% of annual GDP.
- For Quebec, the benefits would total $222 million a year.
- A gain of 71,000 jobs annually in British Columbia alone would represent a 3% increase in total provincial employment as of May 2020. Alberta would add more than 9,200 jobs. Ontario would see more than 10,800 jobs created. Quebec, an additional 2,600 jobs, Manitoba more than 1,000 jobs, and Saskatchewan more than 800 new jobs each year.
- With over $2 billion in annual tax and royalty payments, the LNG sector would become one of the largest revenue generating industries for British Columbia.
- Ontario, Alberta, and Quebec combined could expect more than $360M in additional tax revenues annually.