Tokyo, Japan
November 6, 2014

Thank you, Chairman.

I'm delighted to be here today and welcome this opportunity to meet with those enhancing the strong relationship between our two nations.

We meet today at an important moment in the development of the global energy market.

By 2035, the world will need a third more energy than today. 

In fact, almost all of the increase will come from non-OECD countries. And LNG will be critical to meeting that demand.

Coupled with rising demand is the growing importance of energy security, made clear by recent events in Europe and elsewhere.

As a country with abundant supplies and expertise, Canada has a responsibility on the world stage - as a reliable, secure and responsible source of energy.

Canada's LNG potential

So my message to you today is a simple one:  Canada is ready to become a major exporter of liquefied natural gas.  To Japan.  To the world.

Here's why.

First, Canada is the fifth largest producer of natural gas in the world with recoverable resources estimated at up to 44 trillion cubic metres - enough for over 300 years at current production.

Second, we are making significant progress in moving our LNG to market. 

No fewer than 18 LNG projects are proposed for Canada's west and east coasts, with a total export capacity of 288 million tonnes per year. 

A third, and finally, major reason is that Canada offers unique advantages in the globally competitive LNG business.

Take ocean transportation - a significant component of pricing. Canada's close proximity to Japan is an advantage.

Our shipping time to Asia is significantly shorter than from many traditional LNG producers including proposed projects in the U.S. that would ship from the Gulf of Mexico.

And our greatest competitive edge lies in our massive deposits of shale gas and tight gas located on Canada's west coast.

Vast quantities of natural gas can be dedicated to supply specific LNG export projects or customers.  And there are upstream and midstream investment opportunities.

Canada-Japan partnership

Canada is open for business and welcomes foreign investment. Japanese companies are already actively involved in unconventional natural gas development and LNG export projects in Canada. Japan Petroleum Exploration, INPEX and Mitsubishi Corporation all have unconventional gas development projects in Canada's western-most province. We appreciate their confidence and their presence.

Japanese companies are also partners in four proposed LNG projects in Canada.

In October 2013, Canada and Japan signed a Statement on Oil and Gas Cooperation affirming our common interests in facilitating trade and investment across the oil and gas sector, including on LNG.

This Statement provides a framework to advance our complementary energy interests through enhanced policy dialogue and engagement between senior officials and Ministers from our two countries.

Our two countries are also in the process of negotiating an Economic Partnership Agreement.  Prime Ministers Abe and Harper both know the opportunity this negotiation represents for our  economic future.

So Canada is strengthening  its partnership with Japan in many areas and we are always looking for ways to support joint ventures between our two countries, which is why I am here this week. 

Community engagement

As we look to harness our LNG opportunities, we recognize that exporting resources to the world happens with strong community engagement at home.

We know that local community engagement and building trust with Aboriginal communities is necessary for resource projects to proceed in a timely fashion.  

In Canada, Aboriginal communities are located in close proximity to all major energy export projects.

Our Government has taken concrete action to engage Aboriginal communities in all aspects of resource development - from jobs and business opportunities to ensuring the projects are safe for the local environment.

Another key priority for our Government is to ensure we have the skilled workforce needed to get our resources out of the ground.

The Government of Canada recently signed an agreement with the province of British Columbia to develop a joint training fund for Canadian workers. 

Economic fundamentals

Of course, no country can be competitive today without getting the fundamentals right.  And that has been our focus from day one - by taking action to lower taxes, reduce red tape, exercise fiscal prudence, and open new markets through free trade agreements.

We've also modernized our regulatory review of major energy projects, eliminating duplication and providing investors with predictable, beginning-to-end timelines without compromising public engagement and environmental performance.

This is a clear signal that Canada is committed to expanding and improving its export infrastructure.

According to the Economist Intelligence Unit, Forbes and Bloomberg, Canada leads the G20 as the best place to do business.

Since 2009 Canada has maintained one of the best job creation records in the G7 and also enjoys the lowest net debt-to-GDP ratio in the G7.

Canada recognizes the imperative to diversify our energy markets and is working closely with provincial governments to support the responsible development of Canada's abundant natural resources.

In fact, Canada has reduced the tax rate on new business investment since 2006 by almost half, from 33 to 17.5 percent.

According to KPMG, total business tax costs in Canada are the lowest in the G7 and 46 per cent lower than those in the United States. Indeed, our overall tax rate on new business investment is 13 percent lower than the OECD average.

Canada will continue to have a competitive corporate tax regime for LNG projects in comparison to both Australia and any competing US states.

Let me conclude by saying that we are making steady progress on all of the pieces are aligning for Canada to become a leading LNG exporter. 

I have had many productive discussions during this visit to your country, and look forward to more this afternoon.

Canada looks forward to strengthening our strategic partnership with Japan to harness Canada's LNG potential.

Thank you

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