One LNG Project Adds 3M Tonnes of CO2

by Ship & Bunker News Team
Monday September 24, 2012

A liquefied natural gas (LNG) terminal project in Kitimat on Canada's West Coast would add more than three million tonnes of carbon dioxide a year into the atmosphere, according to a new report by the Pembina Institute for environmental group ForestEthics Advocacy.

Five LNG terminals are under consideration in British Columbia, three at Kitimat and two at Prince Rupert, and there are also plans for new pipelines in the area to transport oil from Alberta's tar sands to the coast.

The report focuses on emissions produced by three energy projects in the area along with the number of jobs each would create.

It finds the Kitimat LNG terminal, a facility for processing British Columbian LNG for shipment to Japan, South Korea, and China planned by Apache Canada Ltd., EOG Resources Canada, and Encana Corp., would create greenhouse gas emissions equivalent to 3.37 million tonnes of carbon dioxide (CO2e) from production of natural gas and LNG terminal operations, and result in 50 new jobs.

Another planned LNG facility, the Shell Klappan CBM project, would create 940,000 tonnes of greenhouse gasses and add 57 new jobs to the economy, while the Enbridge Northern Gateway Pipeline for tar sands oil would make 17.7 million tonnes of greenhouse gasses and create 203 jobs.

"We are saying these projects need to be thought of in terms of their cumulative impact," Karen Tam Woo, ForestEthics Advocacy campaigner, told the Vancouver Sun.

"It seems like there is a new gold rush in B.C. and there hasn't been a full understanding by the public on what the full impact of shipping LNG is."

The use of LNG is seen as a viable alternative to low sulfur fuel oil bunkers as it complies with the currently planned legislation for reduced sulfur marine fuels through 2020, with Neil Gilliver, President of Rolls-Royce's Merchant sector saying that LNG as a vessel fuel is "indisputably the best long-term solution for ship owners."

Lloyd's Register said in a recent study that global acceptance of LNG as a marine fuel will depend on pricing.