More Fossil Fuel Subsidies for LNG Canada is not in the National Interest

OTTAWA | TRADITIONAL, UNCEDED TERRITORY OF THE ALGONQUIN ANISHNAABEG PEOPLE – Prime Minister Carney today released a list of “nation building projects” as part of the implementation of the “One Canadian Economy Act”, Bill C-5.

The high profile LNG Canada export terminal was listed; a project wholly owned by foreign oil giants, including Shell, PETRONAS, and PetroChina. It has had all of its major permits in place since 2016. Phase 2 of the export terminal is awaiting a final investment decision from its foreign joint venture partners. The first phase of LNG Canada, which was only green lit after it received significant subsidies from both the Federal and B.C. Provincial Governments, including $275 million in direct subsidies from Ottawa, and an exemption on steel tariffs which cost taxpayers as much as $1 billion.

“It’s not in the ‘national interest’ to accelerate climate change, but that is exactly what weakening important regulation and giving public tax dollars to heavy polluters will do. This is why we are calling on Prime Minister Carney to drop LNG Canada phase 2 from the list of projects of national significance,” said Sven Biggs, Canadian Oil and Gas Director with Stand.earth. “We are, however, encouraged to see that today’s announcement also included a renewable wind energy project and a high speed rail corridor. These kinds of proposals – as long as they are done under Indigenous and environmentally protective oversight –  will create Canadian jobs today while propelling our economy towards a more sustainable future.”

“Giving Canadian tax dollars to huge multi-national oil companies and foreign investors in the form of fossil fuel subsidies is not in the national interest,” said Kiki Wood, Senior Oil and Gas Campaigner with Stand.earth. “The federal government has committed to our G7 partners to eliminate these kinds of giveaways and any attempt to use the list of nationally significant projects as justification for new fossil fuel subsidies will be met with opposition from everyday Canadians that don’t want their money wasted.”

Among the projects backed by oil companies that appear on the list of projects of national significance is the Pathways Plus carbon capture project which is backed by six of the largest polluters in Canada. Unfortunately the technology they back— carbon capture and storage (CCUS)—has a long record of high costs, underperformance, and most critically is not a solution to the majority of fossil fuel emissions, which come from burning oil, gas, and coal. The Federal Government has already spent $9.1 billion on CCUS with few results.

People living in Canada expect any ‘national interest’ project to roll out transparently and with consent from all impacted Indigenous Peoples, while promoting a climate-safe future. Anything less will be challenged. Approval is not the end of the story – it’s the start of holding power to account.

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Read about debunked LNG myths here

Contact

Sven Biggs, Canadian Oil and Gas Programs Director – Stand.earth +1 778-882-8354

sven@stand.earth (Pacific Time)

Kiki Wood, Senior Oil and Gas Campaigner – Stand.earth +1 604-367-1865.

kiki@stand.earth  (Pacific Time)

Arin de Hoog, Communications, Oil, Gas and Shipping – Stand.earth. +1 613-978-7329,

arin.dehoog@stand.earth (Eastern Time)