Energy minister sees opportunity in U.S. pause on liquefied natural gas

U.S. President Joe Biden’s decision to pause approvals of new licenses to export liquefied natural gas will create opportunity for Canada’s sector, Energy Minister Jonathan Wilkinson said Tuesday.

His understanding is that Biden is attempting to integrate climate considerations into America’s LNG export policy. “Canada has been doing that now for several years,” Wilkinson told reporters after a cabinet meeting in Ottawa.

Wilkinson pointed to methane regulations and emissions standards — such as using clean electricity to do the liquefaction — as examples of what Canada is now requiring from LNG export projects.

“I think there’s an opportunity,” he said when asked what Biden’s decision means for Canadian gas. “But it’s on the basis of Canada offering the lowest carbon intensity natural gas in the world, and ensuring we’re linking it to the displacement of heavier hydrocarbons like coal.”