On both the West coast and East coast, Canada is getting crushed.
While economic growth and production in the US surges following tax cuts and reduced regulations, the economic picture for Canada continues to darken.
Now, there’s more bad news:
Canada is falling far behind the United States when it comes to getting our Liquid Natural Gas to the markets that could utilize it.
According to BNN Bloomberg, “Having already lost the race to sell liquefied natural gas across the Pacific to energy-hungry Asian economies, Canada is now falling further behind in the race to sell LNG across the Atlantic as well.”
Additionally, “Earlier this week, the United States announced a tentative deal with the European Union to avert a full-blown trade war. Part of that detail-light agreement involved a European commitment to purchase more American LNG, suggesting the two multibillion-dollar LNG export facilities in development on Canada’s east coast are facing another challenge from potential buyers.”
In addition to the trade developments that could weaken our competitive position, the US is also much further ahead on their LNG projects:
“It would be hard to argue that the U.S. facilities are not better prepared [than those in Canada] to supply LNG to Europe,” Ed Kallio, principal at Eau Claire Energy Advisory, told BNN Bloomberg via email. “The U.S. projects are up and running and more are coming [while] Canada’s eastern projects remain essentially theoretical.”
One company – Pieridae – that was seeking to supply LNG to Germany, had been counting on using the energy east pipeline to facilitate that. With the Trudeau government cancelling that project, the company will still be able to move LNG to the east coast, but at a much higher cost.
All of this goes to show that government policies have real consequences. If you slam an economy with endless regulations and carbon taxes, there will be less economic growth, investment will go elsewhere, and projects will be either slowed down or cancelled.
With Canada and the US moving in a totally opposite direction when it comes to the ease of doing businesses, LNG is just one of many ways we are falling behind while the Trudeau government remains in power.
Photo – YouTube