Politicians and environmental groups have recently been weighing in on the topic of Liquefied Natural Gas (LNG) development in Canada. Will we see a boost in LNG production, and what are the environmental benefits of LNG?
In a March 25, 2025, article in the National Post, they state, “After years of acrimony over the obvious, the Liberals and the NDP are finally embracing natural resources as a key prong of Canada’s economic future. BC Premier David Eby now unabashedly lauds LNG as crucial, while Liberal leadership contender Chrystia Freeland mentions natural resources as essential to strengthening the economy.”
Impact Assessment Act
The article states that the one major roadblock that stands in the way of a “renaissance in the resource sector” is Bill C-69, also known as the Impact Assessment Act (IAA).
Recently, Pierre Poilievre announced his “New Canada First Economic Action Plan.” This plan will “Rapidly approve Phase 2 of LNG Canada to the project’s double gas production and accelerate at least nine other projects currently snarled in Liberal red tape.” Polievre’s Canada First Economic Action Plan would repeal C-69.
Prime Minister Mark Carney has not been as clear on his position on LNG. CTV recently reported, “A Mark Carney government will maintain the cap on emissions from the production of oil and gas, Environment Minister Terry Duguid said in a recent interview.”
The Prime Minister did say, “Canada has a tremendous opportunity to be the world’s leading energy superpower, in both clean and conventional energy.”
LNG Potential
LNG and energy as a whole will continue to be an important issue for Canada and the world at large.
According to the Fraser Institute, “A 2017 report by the Canadian Energy Research Institute estimates that onshore, primarily shale gas potential in-place at the Horton Bluff in Nova Scotia ranges from 17 trillion cubic feet (Tcf) to 69 Tcf. At current market prices for natural gas, this reserve would represent a market value of between $47 billion and $190 billion.”
They further state that New Brunswick’s Frederick Brook shale formation is estimated to hold between 67.3 Tcf to 80 Tcf of gas.
The report by Fraser also states, “Moratoria on hydraulic fracturing instituted in 2013–2014 remain in place in the Atlantic Provinces, preventing the development of Atlantic Canada’s shale resources, and leaving potentially large economic gains trapped underground.”
The demand for natural gas had the strongest increase among fossil fuels in 2024.
LNG and the Environment
While lauded as a cleaner fuel source with lower global warming potential, a new study suggests LNG may not be as clean as believed and that coal has a smaller carbon footprint than LNG.
The study was led by Robert Howarth, Professor of Ecology and Environmental Biology at Cornell University, and is titled, “The Greenhouse Gas Footprint of Liquefied Natural Gas (LNG) Exported from the United States.” The report was published in the fall of 2024, and states in part, “Production of shale gas, as well as liquefaction to make LNG and LNG transport by tanker, is energy-intensive, which contributes significantly to the LNG greenhouse gas footprint.” The study states that the end-use combustion of LNG is only 34% of the carbon footprint. The remainder of the footprint comes from supercooled LNG tanks that require significant energy inputs, transportation, and methane leaks.
The report also states, “Overall, the greenhouse gas footprint for LNG as a fuel source is 33% greater than that for coal when analyzed using GWP (160 g CO2-equivalent/MJ vs. 120 g CO2-equivalent/MJ).”
Rebutting the Cornell Study is Robert Rapier, a Chemical Engineer and Editor-in-Chief at Shale Magazine. Rapier states that the claims in the Cornell study that LNG has a 33% greater emission footprint than coal over 20 years are controversial. He also states that the conclusions are based on worst-case scenarios and contradict previous government studies.
Rapier also states, “Over the past 15 years, the U.S. has seen a major shift from coal to natural gas for electric utilities. This is why the U.S. has seen the largest decline in carbon emissions of any country over that period.” The US total Greenhouse Gas Emissions peaked in 2007.
Energy Demands
LNG and energy as a whole will continue to be an important issue for Canada and the world at large. According to the International Energy Agency, global energy demand grew at a faster-than-average pace in 2024 as the consumption of electricity rose around the world, with increased supply of renewables and natural gas covering the majority of additional energy needs.
Canada consistently ranks among the top countries for natural resources. Regardless of the energy source (fossil fuel or renewable energy), Canada stands to benefit if we have a good and workable regulatory structure in place.
Dragun’s Senior Consulting Partner, Dr. Joel Gagnon has experience in the mining and resource sectors. Further, Dr. Gagnon has a specialization in analytical and applied aqueous geochemistry. If you have questions or need additional information, you can contact us at 519-948-7300.
If you have questions or need assistance with an environmental issue, contact our office or contact Christopher Paré, P.Geo., directly at 519-948-7300, Ext. 114.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio. Follow Dragun Corporation on LinkedIn, X, or Facebook.
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