Securing global supplies of liquefied natural gas has become the main concern of governments worldwide after Russia's threats to cut off gas to Europe, starting with Poland and Bulgaria.

This contributed to renewed interest in Canada as a potentially reliable supplier of natural gas; European countries have turned to searching for long-term alternative sources of natural gas and liquefied natural gas.

However, former Premier of British Columbia, Canada, currently a consultant at law firm Bent Jones, Christy Clark, believes that Canada’s position in the LNG market has declined due to excessive government regulations, while Australia is making huge gains in the Pacific market.

Canadian Liquefied Natural Gas

Nearly a decade ago, during the first LNG conference in British Columbia in 2013, Clark, the Premier at the time, said the liquefied natural gas industry could be worth $100 billion.

It seems that circumstances took the opposite approach in the following years; out of 24 proposed LNG projects since 2011, there is only one under construction, which is "LNG Canada," valued at $18 billion.

In addition to the cancellation of the "PENWLNG" project by Petronas, after spending $900 million due to market conditions.

Clark’s government at the time sent some negative signals to companies in the form of new taxes on liquefied natural gas, which Petronas rejected.

Clark explained, in statements on the sidelines of Canada’s Natural Gas and LNG Conference on Thursday, May 12, that she made developing the LNG industry a central economic project for her government.

She continued: "The first thing we need in Canada is regulatory certainty, the second is simplicity in the regulatory environment without overreach by the federal government; it is not normal for approvals to take a long time in competition with suppliers around the world."

Clark also sees that the world will need natural gas in the near future, and Canada can meet the demand, aided by its good relations with Indigenous peoples, which will give it a commercial advantage.

Reasons for the Decline of the Canadian Market

Clark said Australia has surpassed Canada in the LNG race to develop massive new projects, leading to securing huge long-term contracts with its Asian customers.

She added: "Canada cannot play a role in trading its natural resources with the Indian and Pacific oceans as long as it does not have pipelines to Southeast Asia."

She added that the United States has outperformed the Canadian gas sector and will seek to ensure it remains in a weak position for as long as possible, according to the Energy City website.

She said: "We cannot play a role in helping Europe, India, and other countries find alternatives to Russian natural gas and oil if we do not have pipelines to meet the world’s needs."

Meanwhile, Canada’s neighbor, the United States, has become the largest LNG exporter in the world.

As for Canada’s LNG export capacities, they have declined due to several factors; mainly protests, regulatory burdens, and difficulties in transporting liquefied gas.

With European countries’ thirst to secure alternative sources, Canada can become a global player in the liquefied natural gas sector if it overcomes the obstacles.

Clark believes the "LNG Canada" project will prove that Canada can produce LNG in a way that enhances reconciliation with Indigenous peoples, compared to the Australian government’s lesser commitment to settlement.