The Carney administration’s decision to prioritize the expansion of LNG Canada is drawing criticism, particularly around the significant public funding required to support the project. The $40-billion LNG Canada venture, based in Kitimat, B.C., has already received over a billion dollars in government subsidies, including corporate tax breaks, reduced electricity rates, and federal exemptions. Despite these incentives, the five joint-venture partners, including Shell, PetroChina, and Mitsubishi, have not committed to funding the project’s second phase.
Experts warn that expanding LNG infrastructure could be a costly mistake. According to Andy Hira, political science professor at Simon Fraser University, Canada faces higher production costs than major LNG competitors like the U.S., Iran, and Qatar, making it less competitive in the global market.
Environmental groups also sound the alarm. Aly Hyder Ali of Environmental Defence argues that expanding LNG amid the climate crisis ties Canada to a “polluting past” and burdens taxpayers with rising costs. A recent Léger poll found that fewer than two in ten Canadians support using tax dollars for LNG infrastructure, with only 22% of British Columbians backing the idea.
Phase 2 of LNG Canada is estimated to emit 6.8 million metric tons of greenhouse gases annually, exacerbating Canada’s climate challenges.
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