On the cusp of explosive growth: A closer look at the liquefied natural gas industry
While natural gas extraction has been a vital industry in northern B. C. for many decades, the budding liquefied natural gas industry promises to generate billions of dollars in provincial revenue.
As oil and gas companies jockey for the best turf in northern British Columbia, the budding liquefied natural gas ( LNG) industry waits to emerge from its chrysalis, a region on the cusp of a job explosion.
All in all, with five plants operational, the LNG sector is estimated to boost the province’s GDP cumulatively over the next 30 years by $ 1.5 trillion, says Jennifer Moore, Economic Development Officer for the North Peace region.
“That is an average of $ 55 billion per year once the plants are fully operational,” she says, adding that the true economic impact of the industry development will be felt in communities through further investment into provincial programs for infrastructure, health care, education and higher incomes for the jobs that relate to the industry.
Plan of action
While natural gas extraction has been underway in the province’s shale-adorned northeast for decades, transportation across the province via pipeline to liquefaction plants in the northwest like Kitimat and Prince Rupert will ready it for dissemination to clients both at home and in an export capacity.
It’s that coastal proximity that connects the industry with foreign and emerging markets through the AsiaPacific gateway.
Growing up
The LNG sector in northern B. C. is still young and ground has yet to be broken.
Before the industry can hit its full producing stride, natural gas companies — like Apache, Chevron and Shell — must invest billions of dollars in infrastructure development to establish
“Should all final investment decisions be made to move forward, we could easily see a doubling of demand for skilled workers.”
extraction points and transportation hubs. They also need to convince the environmental regulators and First Nations communities that the industry is able to extract the resources in a responsible manner.
“As with any major resource based project, there are always concerns about environmental impacts and equitable revenue sharing with affected partners — the development of the LNG industry in British Columbia is no different,” says Moore. “Working with environmental groups, First Nations leadership, and communities that will be impacted by the development is key to the successful maturity of the industry and these conversations have been occurring all along the development timeline.”
Working it out
A big hook for local communities has been the boost in jobs associated with LNG activity, adds Moore.
With five plants operational by 2021, an estimated 21,600 jobs will be directly involved in the building of the LNG export facility and associated pipelines, while 41,900 jobs will be created in the industries that supply goods and services during the peak construction phase. 2,400 permanent jobs will be needed to run the plants and pipelines on an ongoing basis and 12,300 additional jobs are estimated to be created in the exploration and extraction of the natural gas to fulfill the needs of the LNG facilities.
“There will be more demands on all industries in the north,” says Lori Ackerman, Mayor of Fort St. John — a booming resource town in the province’s northeast. “Transportation of supplies for the industry itself and consumer goods, housing, commercial and industrial development will increase and health care will be under pressure as more families move here.”
The opportunities for liquefied natural gas abound and the rapid growth of northern communities is an expected byproduct of resource development that will hopefully inject money into the local economies, she says.
“Having a new customer will enable us to become a price setter rather than a price taker,” adds Ackerman.