The Liquid Natural Gas (LNG) industry is at an impasse, with the energy source touted as a “bridge fuel” for the green transition acting as a low-carbon alternative to coal power generation. This year, LNG Canada’s Kitimat facility was completed and began shipping. The government has fast-tracked Phase 2 while approving several additional export permits, all of which are set to double Canada’s LNG export capacity. These developments come as Canada reaffirms its commitment to the global methane pledge, joining 159 other nations in aiming to cut methane emissions by 30 per cent by 2030. To meet these ambitious targets, new regulations and policies are being rolled out, targeting emissions from the oil and gas sector and LNG in particular.

At first glance, this may seem like a simple and effective way to significantly reduce our national emissions. However, the reality is far less encouraging. In essence, methane is being released directly into the atmosphere because LNG life-cycle emissions are not properly captured or contained. If the energy intensity of shale gas production and gas liquefaction are factored in, the planet-warming impact of LNG can be worse than coal over the lifespan of the operation.

Canada’s surge in production also comes on the backdrop of a global LNG supply glut, as overinvestment and competition with renewables have lowered prices, making it difficult for Canadian producers to turn a profit. If this leads to stranded assets and eventual well abandonment, as well as methane leakages that will continue for years — a cost that the taxpayer will have to bear.

As Canada’s export capacity increases and downward pressure on global prices persists, a........

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