With Qatar’s LNG hobbled by Iran, calls grow for B.C. to ramp up production

The global supply of liquefied natural gas is threatened after a missile strike by Iran wiped out key gas installations in Qatar. Can B.C.’s LNG industry help?

With energy markets reeling due to the U.S.-Israel war on Iran, there are calls for British Columbia to ramp up its production of liquefied natural gas.

That urgency accelerated on Thursday with the CEO of QatarEnergy telling Reuters that as much as 17 per cent of Qatar’s LNG capacity could be out of action for as long as five years.

Among those calling for B.C. to fill the energy void in the coming years is former premier Christy Clark.

“We could be really helping the world,” Clark told CTV News on Thursday. “Because right now, the world needs Canada’s LNG.”

Clark championed the industry during her time in power, with as many as 18 or 19 LNG projects contemplated at one point in B.C.

But two premiers later, there is only one large-scale LNG project operational.

“If the regulatory process hadn’t been all gummed up by the Trudeau government and then the NDP government that came in in 2017, I absolutely am sure that we would be helping the world right now by shipping LNG from British Columbia,” Clark said.

But B.C.’s energy minister pushes back on the suggestion the province missed a window to build up the industry, insisting more production capacity is expected to come online.

“Well, when John Horgan became premier, there were zero LNG projects in B.C.” Adrian Dix told CTV News at his Vancouver constituency office on Thursday.

“LNG Canada is exporting to Asia now. And we’ve got four LNG projects under construction, with more in the approvals stage. So, B.C. is well-positioned because of policies we’ve taken in the last few years.”

CTV News asked Premier David Eby about whether there are any plans to ramp up the LNG sector in light of the Iran war and the knock-on effects to energy supply.

He stressed his first thoughts are with people in the region affected by the war, but said the situation has highlighted Canada’s stability to investors.

“It just underlines our case, as tragic as it is, that British Columbia is a safe place in an incredibly uncertain world,” Eby said Thursday, before pointing out various projects under construction or in the final investment stage.

That was echoed by former environment minister Barry Penner, now with the Energy Futures Institute, which often advocates for the province’s resource extraction sector.

“I think what we’re seeing in the Middle East underlines Canada’s selling point, which is that we’re a much more stable environment,” Penner told CTV News. “Not as risky and not as prone to these type of disruptions.”

Like Clark, Penner said while building more LNG capacity over the last decade was a missed opportunity, the Iran war and its knock-on effects have created a new window to develop the sector in B.C.

But some fear increased urgency to move projects ahead due to economic pressures could lead governments to bypass appropriate environmental consideration.

Especially with Prime Minister Mark Carney pushing to accelerate major projects, many of which have environmental implications.

“We behave as though we are beholden to these technologies, these companies, and Canada’s only option is to exploit and export our resources as fast as we can,” said Sierra Club BC campaigns director Shelley Luce. “We know that’s not true.”

Luce put forward the idea of economies around the world focusing on sustainable, environmentally friendly energy alternatives less susceptible to the large price swings often seen in fuels based on resource extraction.

The LNG supply crunch comes with four LNG projects under construction in B.C., with LNG Canada’s owners expected to make a final investment decision this year on moving ahead with Phase 2 of expansion at its Kitimat facility.