Economic impact of utilization of liquefied natural gas (LNG) in the province of New Brunswick

Abstract

In this study, economic impact of liquefied natural gas (LNG) utilization in the province of New Brunswick is analyzed and quantified. First, major economic consequences of LNG utilization for provincial economy are identified. Second, a dynamic demand/supply model of natural gas sector is designed and estimated. Third, the designed model is used to simulate cumulative economic impact of LNG utilization in the province. Finally, simulated data is used to calculate annual long-run increase in value added, tax revenue and job creation due to a one percent increase in LNG utilization in the province of New Brunswick.