The Role of Canadian LNG in Asia

Role of Canadian LNG The Role of Canadian LNG in Asia Public Report November 2022 Trusted Intelligence woodmac.com woodmac.com Report Overview This report demonstrates the impact of Canadian LNG in reducing emissions from the Asian energy mix by 1) determining the potential Asian demand for Western Canada LNG; 2) modeling different scenarios for Cana. [...] Even in a scenario where Canada aggressively ramps up its LNG LNG demand growth opportunity exports (i.e., the unconstrained case), Asian demand will still be able to absorb the additional ▪ High confidence in amount Canadian LNG on the global market through 2050 of Canadian natural gas Canada is well-positioned geographically: Pipelines and LNG export infrastructure can be reserves built in the w. [...] Western Canadian ▪ Relative confidence in LNG is much closer to Asia relative to US Gulf Coast LNG, which needs to be shipped through Canadian LNG cost- the Panama Canal to get to Asia competitiveness for buyers LNG from Canada would be cost-competitive for northeast Asian importers: Although not in NE Asia as inexpensive as LNG from Qatar for Asian buyers, Canadian LNG is quite cost-competitive,. [...] Compared to other global exporters of LNG, Western Canadian LNG is cost-competitive Source: Wood Mackenzie 3 woodmac.com Canadian LNG would ultimately help to lower emissions in Asia Thesis Element Findings Confidence Level Canadian LNG going to NE Asia If Canada does not export as much LNG as anticipated to NE Asia, the region would ▪ High confidence in will have a signifi. [...] Under this scenario, the emissions displaced from Canadian LNG would total 5.5 GtCO2e from 2022 to 2050 or 181 MtCO2e on average per year, which is equivalent to removing all Canadian cars from the road (41 million cars) Source: Wood Mackenzie 4 woodmac.com Asia amounts to 67% of the actual global LNG demand and continues growing Western Canada LNG has strategic positioning.