Funding for LNG Canada supports up to $40 billion investment that will lead to 10,000 middle-class jobs
KITIMAT, BC, June 24, 2019 /CNW/ - Canada understands that environmental leadership and economic growth go hand in hand. With modern infrastructure and cleaner technology to get our resources to new markets, we can diversify our trade, grow our economy, and create good jobs for middle-class Canadians.
Today, the Honourable Bill Morneau, Minister of Finance, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, confirmed the Government of Canada's $275 million investment supporting LNG Canada's major liquefied natural gas (LNG) complex in Kitimat, British Columbia. This $40 billion project represents the largest single private sector investment in the history of the country.
Minister Morneau announced that the federal investment will include $220 million to help fund highly energy-efficient gas turbines for LNG Canada, minimizing both greenhouse gas emissions and fuel use. The additional $55 million will be for the replacement of the Haisla Bridge in the District of Kitimat to support and service existing and increased traffic in the region.
These investments will help support the overall advancement of the LNG Canada facility, which will ultimately create over 10,000 jobs, as well as lead to billions of dollars in direct government revenues and hundreds of millions of dollars in construction contracts for Indigenous businesses.
"Building on a 60% increase in foreign direct investment last year, our government has created the economic conditions to attract the largest private sector investment in Canadian history. LNG Canada's facility will help bring a cleaner Canadian energy source to replace coal in some of the world's fastest growing economies while creating thousands of good jobs in northern British Columbia, in First Nations communities and across Canada."
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
"The Government of Canada is proud to support this historic $40 billion project that will get our resources to new markets, diversify our trade, grow our economy and create middle-class jobs for Canadians, including First Nations and other communities in northern British Columbia. It's a vote of confidence in Canada's resource industry and is good news for Canadians right across the country."
– The Honourable Bill Morneau, Minister of Finance
"Our government supports the creation of a clean, sustainable and competitive LNG export sector. Well-planned projects have the potential to strengthen regional, local, Indigenous and national economic development objectives. The LNG development has the potential to help the world build a low carbon energy future."
– The Honourable Amarjeet Sohi, Minister of Natural Resources
"The Government of Canada has enabled LNG Canada's development of the lowest carbon content LNG for export in the world today. This secures thousands of high-paying jobs and billions in government revenues and demonstrates Canada is a place for major private sector investments. The Haisla Bridge is vital infrastructure linking the community of Kitimat to the sites and ports that will export LNG and aluminum to Asia. LNG Canada is pleased to have the Government of Canada step forward to support the community and the development of Canadian natural resource exports."
– Andy Calitz, CEO, LNG Canada
- This $40 billion project, located in Kitimat, includes a liquefaction facility, a 670 km pipeline from Dawson Creek and a marine terminal. The project represents the largest private sector investment in Canadian history and is an important future avenue of growth for Canadian gas exports.
- The investment in the LNG Canada facility will create 7,500 direct construction jobs and at least 300 permanent jobs in the new facility once completed. The number rises to 10,000 jobs when including pipeline construction and other upstream employment.
- LNG Canada received required regulatory approvals in 2015 and is the first Canadian LNG project to reach a final investment decision.
- Construction activities began in October 2018, with a target in-service date of the middle of the next decade.
- At full capacity, the terminal will convert and export as much as 26 million tons of LNG per year, primarily to Asia. This represents roughly 20% of overall gas production in Canada.
- On October 2, 2018, the Right Honourable Justin Trudeau, Prime Minister of Canada, announced $275 million in federal support, as well as a commitment that trade barriers would not get in the way of this generational project.
- A $220 million investment is being made through the Strategic Innovation Fund to support a key component of the LNG Canada facility. The Strategic Innovation Fund is designed to attract and support high-quality business investments in Canada's most dynamic and innovative sectors.
- A $55 million investment for the replacement of the Haisla Bridge is being made through Western Economic Diversification Canada.
- It is estimated that the Haisla Bridge project will create up to 100 jobs over the four-year construction period. These jobs will benefit people living in the District of Kitimat and surrounding region, including First Nations communities.
- There are hundreds of programs and services to help businesses innovate, create jobs and grow Canada's economy. With its simple, story-based user interface, the Innovation Canada platform can match businesses with the most fitting programs and services in about two minutes.
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SOURCE Innovation, Science and Economic Development Canada
For further information: Dani Keenan, Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 343-291-1710; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, [email protected]; Ben Stanford, Regional Communications Manager, Western Economic Diversification Canada, 604-365-8050, [email protected]