On the occasion of the LNG2023 Conference, the Canadian Gas Association organized and delivered a very successful Diplomatic Forum. The forum was chaired by the former Canadian Ambassador to the United States David B. MacNaughton jointly with Canada’s Ambassador to Japan Ian McKay.
The Forum provided a unique and timely opportunity for a global roundtable conversation on the topic. The discussion was attended by over 100 invited high level diplomatic, political, civil society, and industry representatives who focused their presentations and roundtable comments on two main topics: 1. The role of LNG in enhancing global energy security, and 2.The conditions and financing required to ensure the growth of LNG supply.
Senior IGU Representatives, including the President, the Vice President, the Secretary General, and several Regional representatives also participated in this important gathering.
While to enable an open discussion the forum was held in strict Chatham House Rule format, there was a final Communiqué issued and released at the conference.
LNG2023 Diplomatic Forum Official Communique
July 10, 2023
- Over 100 Diplomats, Indigenous and Industry leaders and key stakeholders from over 30 countries attended a Diplomatic Forum, on the sidelines of the preeminent global LNG conference and exhibition, LNG2023, staged in Vancouver, British Columbia, Canada.
- The forum addressed two of the most strategic and timely issues in natural gas markets today, “The Role of LNG in Enhancing Global Energy Security” and “The Conditions and Financing Needed to Grow the LNG Supply”.
- There was consensus that our world continues to navigate a global energy crisis. The need to provide cleaner, safer and more reliable sources of energy is more urgent than ever.
- There was agreement that navigating through and beyond the energy crisis is a complex challenge with differing approaches in view of the diversity of energy mix and circumstances around the world. It is clear that there can be no energy transition without Asia and the rest of the Global South. And that the Global South will approach the transition in their own way.
- The participants recognized the important role that LNG plays in enhancing energy security while at the same time reducing global emissions. There was a strong consensus that more LNG supply is needed to mitigate future energy shocks and energy price volatility.
- While many energy-importing countries are reviewing the role of LNG over time, the commitment to the product is long-term, given its many benefits to global energy security. There is strong agreement they will continue to import large quantities of LNG. What they seek is a combination of three things: affordability, reliability and diversity of supply.
- Developing LNG import economies and emerging import countries view LNG as a strategic fuel to meet their energy needs, grow their economies and enhance quality of life
- There was strong recognition that Canada can play a significant role in adding low carbon intensity LNG supply to the market, reducing global emissions while at the same time providing opportunities for economic reconciliation with many Indigenous communities.
- To continue its progress, the LNG industry needs to focus on its continuing effort to reduce its environmental footprint, as demand for low-carbon and responsibly-sourced LNG has increased substantially— particularly to markets with stringent carbon regulations, including Europe and some Asian countries.
- The LNG industry is in competition for investment dollars with other industries—especially industries that have shorter payback cycles. Contracting negotiations, modular construction and FSRU’s can all play a role in de-risking capital, but the industry needs to accelerate efforts to deliver this much needed resource to the world.