Tristan Goodman, CEO of the Explorers and Producers
Association of Canada, said the framework is generally
"constructive and positive", but the industry had some concerns
about how the cap would be implemented.
"The message from the province is 'We believe we can develop
natural gas and move forward broadly on Indigenous
reconciliation while also meeting out climate ambitions',"
Goodman said. "That's good, but the concern lies in the
details."
TC Energy , which is building the Coastal GasLink
pipeline that will supply LNG Canada and Cedar LNG, said in a
statement on Wednesday it was "carefully reviewing" the
framework.
Prime Minister Justin Trudeau's Liberal government is
targeting a 40-45% cut in emissions by 2030, and has also
promised an emissions cap for the oil and gas industry, Canada's
highest-polluting sector.
Canadian Natural Resources Minister Jonathan Wilkinson
praised the new provincial regulations.
"By committing to capping emissions from the oil and gas
sector in the province, B.C. is setting the pace for bold
environmental action," he said.
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North American liquefied natural gas export projects ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Nia Williams in British Columbia; Additional
reporting by David Ljunggren in Ottawa
Editing by Marguerita Choy)
By Nia Williams
March 17 (Reuters) - British Columbia's decision this
week to toughen emissions standards for new liquefied natural
gas (LNG) projects creates one of the most robust climate plans
in North America, but sets a high hurdle for industry even as
many countries look to Canada to become a global supplier of
gas.
As part of a new energy action framework, the western
Canadian province will require proposed LNG projects that are
going through or entering the environmental assessment process
to have a credible plan to be net-zero emissions by 2030.
While the tougher regulation will not impact the huge
Shell-led LNG Canada project already under
construction, a proposed export terminal adjoining the
small-scale Tilbury LNG facility and the early-stage Ksi Lisims
LNG project in northern B.C will fall under the new rule.
Canada is the world's sixth-largest gas producer and its
west coast LNG industry has seen revived interest as the world
tries to secure alternatives to Russian gas supply following the
invasion of Ukraine.
The province will start exporting 14 million tonnes per
annum (MTPA) when LNG Canada enters service in 2025.
"That (net-zero requirement) is a very high bar and a high
hurdle to pass," said Mark Zacharias, executive director of
think-tank Clean Energy Canada, adding the new framework rounds
out B.C.'s plan to cut emissions 40% below 2005 levels by 2030.
"The B.C. roadmap to 2030 is probably North America's
strongest climate plan but what was missing until now was
answers on dealing with oil and gas. This fills in the missing
gaps."
Ksi Lisims, proposed as a 12-MTPA plant, will achieve
net-zero through a fully electrified facility that utilizes
renewable hydro power and carbon offsetting, spokesperson
Rebecca Scott said.
FortisBC, one of the companies behind the Tilbury Marine
Jetty project, said it welcomed the clarity the framework
provides for LNG development and "looked forward to engaging
with government" on the 2030 guidelines.
B.C. released its energy action framework alongside a
positive environmental assessment for the C$3-billion ($2.2
billion) Cedar LNG project, a joint venture between Haisla First
Nation and Pembina Pipeline Corp .
The province said it will sign an agreement with the Haisla
Nation to explore ways to lower emissions to near zero by 2030. OIL AND GAS CAP
B.C.'s new regulations also include an oil and gas emissions
cap and plans to accelerate the electrification of the economy.
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