Regulated Operations / Liquefied Natural Gas

Liquefied natural gas (LNG) is part of a global climate solution as it can be used to displace other higher emitting fossil fuels such as coal. B.C. plans to capture the economic and environmental benefits of LNG while managing emissions in a way that is consistent with the province’s leadership on climate action.

B.C. encourages clean LNG facilities through a number of initiatives:

  • The LNG emission limit requires LNG operations to achieve a greenhouse gas (GHG) emissions intensity benchmark of 0.16 tonnes of carbon dioxide equivalent (CO2e) per tonne of LNG produced. As of 2016, this benchmark is lower than that of any other LNG export facility in the world
  • The Environmental Incentive Program (PDF, 421 KB) encourages LNG investment in advanced technology
  • The revenue-neutral carbon tax applies to the use and combustion of fossil fuels at LNG facilities and at upstream extraction and processing facilities

Who Must Comply With the LNG Emission Limit?

Any operation that produces LNG on a commercial scale and emits 10,000 tonnes or more of CO2e per year is a regulated operation under the Greenhouse Gas Industrial Reporting and Control Act and must comply.

Meeting the Emission Limit

Regulated LNG operations can meet the emission limit in three ways:

  1. Reduce emissions by using lower-emission technologies or clean energy. Facilities that achieve emissions under the limit earn credits.
  2. Purchase offsets from B.C.-based reduction projects. The amount of offsets purchased must be equal to the amount by which the operation’s emissions exceed the limit.
  3. Contribute to a technology fund through the purchase of $25/tCO2e funded units. The amount purchased must be equal to the amount by which the operation’s emissions exceed the limit.

LNG facilities can manage emission-limit regulatory requirements on the BC Carbon Registry. Through the registry, LNG facilities can record earned credits, find eligible offsets, secure funded units after contributing to the technology fund, and monitor their progress.

Reporting

LNG operations must report both on their emissions and their compliance with the LNG emissions limit.

Emission Reporting

In order to fulfil B.C. reporting requirements for industry, regulated LNG operations must:

  1. Monitor and quantify emissions annually
  2. Verify the emission report through an accredited third party
  3. Complete and submit the emission report annually, together with the compliance report

See Reporting GHG Emissions for more information.

Compliance Reporting

In order to comply with the LNG emissions limit, regulated LNG operations must:

  1. Collect data for the compliance report. LNG operations are required to monitor additional emissions (such as those from electricity used) and submit additional data (such as LNG produced) that other reporting operations are not.
  2. Determine the amount of emissions for compliance reporting
  3. Establish a compliance account on the BC Carbon Registry (first-year reporters only)
  4. Add compliance units to the account to meet the emission limit. Units can be earned credits, offset units or funded units from technology fund contributions.
  5. Complete the compliance report, as required by the Greenhouse Gas Emission Reporting Regulation
  6. Verify the compliance report, as required by the Greenhouse Gas Emission Reporting Regulation
  7. Submit an annual compliance report, together with an emission report, through the Single Window Reporting System

The Environmental Incentive Program

To support investment in advanced technology, incentives (PDF, 421 KB) may be available to operators of LNG operations