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 $300 billion in economic impact over the next 10 years.
- Employment (direct and indirect) from natural gas activity estimated to be approximately 75,000 per year over the next 10 years.
- Taxes paid to the federal and provincial governments from the upstream natural gas industry will total $45.6 billion over the next 10 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 2018 CAPP data the economic impacts of supporting a Canadian LNG industry are significant and estimates include:
- Generation of $2.4 billion towards Canada's GDP in direct or indirect activity
- Employment growth on a national level increases by 10,000 direct or indirect jobs
- Annual government revenues (corporate, personal, indirect taxes and royalties) for the provincial and federal governments