VANCOUVER — UNCEDED xʷməθkʷəy̓əm (MUSQUEAM), Sḵwx̱wú7mesh (SQUAMISH) AND səlilwətaɬ (TSLEIL-WAUTUTH) TERRITORIES

The B.C. government and liquefied natural gas industry have failed to consider the industry’s downsides and have overstated the benefits, according to a new report from the David Suzuki Foundation.

“Running on Fumes: B.C. LNG’s Overhyped Promises, Risky Future and Public Costs” introduces a framework to test claims made about LNGs economic benefits and finds the projections used to justify LNG expansion are greatly overstated.

“This report reveals the truth behind LNG’s hype. The real winners are foreign multinationals, not British Columbians. Offshored profits, few jobs, higher energy costs and ignored environmental damages — that’s what doubling down on fossil gas exports promises,” said Thomas Green, senior manager, climate solutions at the David Suzuki Foundation.

For nearly two decades, politicians have been promising a huge investment boom, windfall government revenues and economic expansion driven by development of an LNG export industry. However, “Running on Fumes” shows that the LNG industry appears plagued by many of the same issues as the mining industry, exhibiting a pattern of grand promises, under-delivery and hidden costs.

“The numbers tell a different story than the political talking points,” Green said. “LNG was sold as a generational opportunity, but most profits will leave the country, jobs will be short-term and many of them offshore and households and businesses will be left paying higher gas and electricity costs. It’s time to stop pretending this industry is the foundation of our future economy and recognize that it’s more likely to be a dead weight.”

“This report confirms that LNG expansion projects are designed to benefit foreign interests while local communities suffer,” said Janelle Lapointe, senior adviser, Indigenous strategy at the David Suzuki Foundation. “It also confirms that Indigenous leaders need to be wary of the LNG industry’s big promises. Real reconciliation means land restitution, renewable energy and community power, and this isn’t what we’re seeing here. Investing in LNG is investing in the past, when we should be building a safe climate future for all.”

To enable better decision-making around LNG expansion, the authors of “Running on Fumes” recommend an independent review of economic impacts, integrating environmental and socio-economic costs into project assessments, establishing a robust system for tracking and evaluating performance against forecast benefits and engaging in more deliberate economic planning.

“What a lot of people don’t realize, and what this report confirms, is that LNG development will not only increase gas and electricity prices but will also do irreversible harm to the environment and Indigenous land-use practices,” Green said.

Despite the risks, likely disappointments and unaccounted for costs outlined in “Running on Fumes,” the federal government continues to support the LNG industry in B.C. In September, as part of its new national projects initiative, Canada took a huge step back in announcing it will expand and fast-track LNG projects in B.C. The approval of Ksi Lisims LNG in B.C. was another massive blow for the climate.

“These emissions, enabled by the B.C. government, will contribute significantly to climate change and boomeranging back on our province as wildfires, smoke and other weather extremes,” Green said.

When global momentum toward renewable electricity and electrification is increasing, the B.C. and federal governments should be focusing on projects that position the province and the nation for the race to a net-zero future, such as building an east-west electricity grid, accelerating electrification of the economy and improving efficiency, thereby reducing pollution and making life more affordable. A survey undertaken by the David Suzuki Foundation and Leger in August shows the public supports electrification over fossil fuels, confirming that 77 per cent of people in Canada favour upgrading an east-west electricity grid with new transmission lines.

The full report can be read here.

– 30 –

For more information or interviews, please contact:

Rosie Rattray: rrattray@davidsuzuki.org, 416-570-3728