CALGARY, Alberta, Nov. 07, 2022 (GLOBE NEWSWIRE) — Canadian liquefied natural gas (LNG) exports to Asia could achieve the net annual emissions reduction equivalent to removing each car from Canadian roads, a new study from the global energy research and consulting firm Wood Mackenzie.

As world leaders gather in Egypt October 8-18 for the COP27 climate change summit, the study commissioned by the Canadian Energy Center shows how natural gas from Canada could help energy-hungry Asian countries meet growing demand while simultaneously reduce net global emissions by displacing coal.

Given Canada’s vast natural gas reserves, proximity to Asian markets and low-cost product, Canada has the potential to become a key supplier for decades to come.

“In Canada we have plenty of natural gas. Someone will produce this natural gas – if it’s not Canada, then someone else,” said Matthias Blönnigen, Wood Mackenzie’s director Americas Consulting.

“If we had more western Canadian LNG, that would allow many other sources to go to Europe. It’s like a domino.”

Canada is currently unable to export LNG to global markets, but a handful of West Coast projects could see Canada enter a global market that has grown significantly as nations seek alternatives to Russian natural gas.

LNG from Canada would be very competitive with other suppliers due to lower transportation costs to Asian markets, as well as lower plant emissions and utility costs than many of its peers.

“The shorter shipping distance and lower resource breakevens mean Canadian LNG is more competitive,” said Bob Kubis, director of Wood Mackenzie – Americas Natural Gas, LNG & NGL Consulting.

“Canadian natural gas resources are being developed in a regulatory environment where they emit fewer emissions than certain US shale basins.”

The report’s authors examined three scenarios – a baseline scenario that accounts for moderate growth in Canada’s LNG industry, one in which…