From: VERONIQUE LAFOND [
March 11, 2016
Pacific NorthWest LNG Project Canadian Environmental Assessment Agency 410-701 West Georgia Street Vancouver, British Columbia V7Y 1C6
Via email: [email protected]
To Canadian Environmental Assessment Agency,
I am writing to you today to express my support, as the representative of the Government of Japan to Canada, for Pacific NorthWest LNG.
Japan is the largest LNG importer in the world, and Japan’s demand for LNG has increased by 30 percent due to the shutdown of nuclear power plants after the Great East Japan Earthquake. Japan’s imports of oil and gas have increased significantly, and now one of the most highly prioritized policies for Japan is to import LNG at a competitive price in a timely manner.
Japan has set a target energy mix for 2030 in which LNG occupies the largest share amounting to about 27 percent of all power generation sources. At the same time Japan, has made efforts towards the diversification of supply sources all over the world.
Canada is one of the most promising potential LNG supply sources, with major reserves of natural gas. The LNG shipment timeline from Canada to Japan is just 10 days, which will result in lower freight costs and safer shipping routes, avoiding choke points.
However, at this time several other countries are aggressively developing LNG projects, in some of which Japanese companies participate, and U.S. exports of LNG have already commenced this year. The global LNG market has changed drastically from a seller’s market to a buyers’, and competition among LNG suppliers is increasing. As LNG exports are usually based on long-term contracts, should Canada miss a window in demand for LNG, the next opportunity may be 10 or 20 years in the future.
Therefore, it is critically important to advocate the early realization of LNG export projects in Canada. If the approval of the environment assessment is delayed further, Canada may run the risk of missing the chance to export LNG to the growing Asian market for a long time. We hope that the new Government of Canada will understand the economics of the world LNG market, and approve the environmental assessment of the Pacific NorthWest LNG project, which will become a source of Canadian LNG exports as early as possible.
Japan welcomes Canada’s positive engagements in climate change issues, as shown in COP 21. We understand the importance of climate change policies, especially for the new Liberal government and its high priority placed on reducing emissions of greenhouse gases, which affect all nations worldwide. While the LNG export projects in British Columbia may produce some additional greenhouse gases, LNG exports to the Asian market will reduce the heavy use of coal-fired power and crude oil there, contributing to a drastic reduction in the greenhouse gas emissions of these developing countries. These projects will result in a significant reduction of greenhouse gas emissions worldwide.
Japan is one of the most advanced countries with cutting-edge clean technologies for sustainable development. Japan Petroleum Exploration Company (JAPEX) is a leading company in the oil and gas sector of Japan, with substantial expertise in environmental protection as well as in oil and gas exploration and development. JAPEX is already building the infrastructure needed to receive a stable, long term supply of LNG from Pacific NorthWest LNG at the Soma LNG receiving terminal in northeastern Japan, expected to be completed in the spring of 2018.
The Government of Japan is confident that the PNWLNG will take the utmost efforts to protect the Canadian environment, given the participation of JAPEX in this vital project.
In closing, I hope the Government of Canada will appreciate in full the importance of the PNWLNG project, and approve the environmental assessment of the project as early as possible.
Sincerely,
Kenjiro Monji Ambassador of Japan to Canada Embassy of Japan in Canada
(Veronique Lafond, Secretary Assistant to the Ambassador of Japan)
CC: Prime Minister of Canada, The Right Hon. Justin Trudeau Minister of Foreign Affairs, The Hon. Stéphane Dion Minister of Environment and Climate Change, The Hon. Catherine McKenna Minister of Finance, The Hon. Bill Morneau Minister of Fisheries, Oceans and the Canadian Coast Guard, The Hon. Hunter Tootoo Minister of Justice and Attorney General of Canada, The Hon. Jody Wilson-Raybould Minister of International Trade, The Hon. Chrystia Freeland Minister of National Defence, The Hon. Harjit Sajjan Minister of Natural Resources, The Hon. Jim Carr Minister of Sport and Persons with Disabilities, The Hon. Carla Qualtrough Minister of Transport, The Hon. Marc Garneau