Conservative Pledge to issue permits for already permitted LNG terminal points to more fossil fuel subsidies 

səl̓ílwətaʔɬ (Tsleil-Waututh), xʷməθkwəy̓əm (Musqueam), and Skwxwú7mesh (Squamish) territories (VANCOUVER, B.C.) – Earlier today, at a campaign stop in Terrace, B.C., Conservative party leader, Pierre Poilivre, pledged to rapidly approve 10 projects, including Phase 2 of LNG Canada, a massive natural gas liquefaction project in nearby Kitimat B.C. [1]

Today’s announcement ignores the fact that both phases of LNG Canada were approved by the federal government in 2016. The second phase of the project is awaiting a final investment decision from international oil giant Shell and their joint venture partners.

“The fact is, Phase Two of LNG Canada has all the permits it needs. It isn’t being built yet because Shell and the other big oil companies that own it need another handout from Ottawa to make this project viable,” said Sven Biggs, Oil and Gas Program Director for Stand.earth. “You have to ask whether today’s announcement indicates that a Poilievre government will be coming to the table with Canada’s credit card, or if it’s just that he doesn’t understand how deeply dependent these projects are on fossil fuel subsidies?”

The first phase of LNG Canada, which is nearing the end of construction, was only green lit after it received significant subsidies from both the Federal and B.C. Provincial Government, including $275 million in direct subsidies from Ottawa, and an exemption on steel tariffs which cost taxpayers as much as $1 billion. A recent report from Environmental Defence revealed that the Government of Canada provided at least $29.6 billion to the fossil fuel and petrochemical companies in 2024 alone, including $700 million of subsidies to LNG projects. [2]

“LNG won’t create long-term jobs and economic opportunities for northern communities,” said Kiki Wood, Senior Oil and Gas Campaigner for Stand.earth. “‘Canadian’ LNG terminals are often owned by foreign oil giants who receive massive subsidies, tax breaks, and exemptions from provincial and federal governments in exchange for blowing past our climate targets. The Conservative’s pledge is both short-sighted and will cost Canadians in the pocket book and in the long term.” [3]

Notes for editors

[1] The Conservative Pledge can be seen here.

[2] Environmental Defense’s report on 2024 federal subsidies to oil and gas companies can be found here

[3] Stand.earth’s resource on the myths of LNG can be found here.

Contacts

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)