Natural gas development is an important part of Canada’s economy.
The industry contributes to Canada’s overall economic health through jobs and taxes and royalties paid to the provincial and federal governments. This revenue can be used to help pay for health care, education, infrastructure and other social programs. The following benefits will be realized if we are able to build a liquefied natural gas (LNG) industry to ship Canadian natural gas to Asian markets:
- It is forecast that the natural gas industry will generate $2.3 trillion in economic impact over the next 20 years.
- Employment (direct, indirect and induced) from natural gas activity was 250,000 in 2015 and forecast to grow to almost 650,000 in 2035.
- Taxes paid to the federal and provincial governments from the upstream natural gas industry will total $405 billion over the next 20 years. (Source: CERI)
The future of natural gas
While the natural gas market has been challenged by a number of factors including the increase in U.S. production and the 2009 global recession Canada’s natural gas industry does have a bright future if we are able to build a liquefied natural gas industry to ship Canadian natural gas to Asian markets. Based on a 2015 Conference Board of Canada report, between 2016 and 2045, the economic impacts of supporting a British Columbia LNG industry are significant and estimates include:
- An annual investment across the full value chain of average $7 billion per year.
- An increase in Canada’s GDP by $7.4 billion annually over 30 years, with $5.3 billion of this growth occurring in British Columbia.
- Employment growth on a national level increases by 65,000 jobs, with 46,800 occurring in British Columbia.
- Annual government revenues (corporate, personal, indirect taxes and royalties) increasing by $6 billion annually, with an equal split going to the federal and British Columbia governments.