Thank you, Mr. Chair and colleagues, for inviting me to the standing committee today.
Hello, everyone. It's my pleasure to appear before you today to discuss elements of the budget implementation act related to my department.
Canada finds itself at a decisive moment. We are facing a trade war started by the United States. We need to build resilience across our economy, as well as deal with climate change. However, these challenges present tremendous opportunities if we are bold, if we are strategic and, most importantly, if we are united. Budget 2025 is about seizing these opportunities to ensure that Canada leads as an energy superpower, with an economy that is strong, sustainable and sovereign.
Canada's LNG sector is essential to our goal of diversifying exports beyond a single market and to solidify our position as a stable and low-carbon superpower and reliable supplier to our allies around the world. As LNG supplies expand to meet demand, Canada is positioned to offer a long-term, low-emission and predictable option to global markets.
The world wants what Canada has to offer. Providing LNG to our allies and partners is key to making Canada an energy superpower that will bring jobs to Canadian communities across this country, bring higher wages to our workers and build the resilience we need as we tackle the unfair and unjustified American tariffs.
This year, with our first exports to Asian markets under way as of last summer, and the referral of LNG Canada phase two and the Ksi Lisims project to our new Major Projects Office, Canada's LNG sector has historic momentum. LNG Canada phase two would double the production of LNG Canada phase one to become the second-largest facility of its kind in the world. The Ksi Lisims project, led by the Nisga'a Nation, would become Canada's second-largest LNG facility, with capacity to export 12 million tonnes per annum of LNG.
The federal budget puts forward two measures that would further strengthen LNG exports.
First, budget 2025 reinstates accelerated capital cost allowances for low-carbon LNG facilities, making these investments more attractive to investors while rewarding top-tier emissions performance.
Second, division 41 proposes to amend the Canadian Energy Regulator Act so that LNG export licences are extended to 50 years—10 years longer than before. This will have a profound impact, as it will mean more time for project owners to amortize the added capital costs of their low-emission strategy. It will allow them to pursue phased investment to expand their facilities and strengthen their returns. Current licence-holders can also apply for longer-term licences if their environmental approvals remain valid and if the Canada Energy Regulator assesses that Canada will still have enough natural gas to meet domestic needs.
These amendments may seem technical, but they have a real impact. They ensure that Canada can compete for investment from around the world and create jobs. We can generate greater royalties and expand government revenues so that we can pay for the things we are proud of as Canadians—our universal health care, our $10-a-day child care and our public infrastructure.
They also reflect our approach to streamlining regulations, accelerating projects and delivering certainty for proponents and investors so that our communities can prosper. If we consider the work being done by the Major Projects Office, the two LNG projects we referred to it could benefit from these changes.
These two projects alone represent over $100 billion in investment and will support thousands of good-paying jobs during construction and long-term employment across B.C. and Alberta. Should all proposed LNG projects proceed, Canada could be exporting as much as 100 million tonnes of LNG per annum, creating massive economic growth, increased international energy security and a strong competitive advantage, thanks to our continued efforts to protect the environment and respect indigenous rights.
