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'Massive exaggeration': B.C. economists raise concerns over Woodfibre LNG study
14/11/26
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Nov. 4, 2026
Job, revenue numbers in study questioned as LNG export facility nears completion near Squamish
An economic impact assessment study commissioned by Woodfibre LNG (WLNG) is drawing criticism from economists.
According to the study, which was done by Vancouver-based strategy advisory firm Deetken Insight, construction at the WLNG site in Howe Sound is more than 70 per cent complete as of September 2026.
The study claims the construction of the WLNG facility and the FortisBC Eagle Mountain Pipeline is expected to contribute around $7 billion in GDP and generate nearly $13.6 billion in total economic output.
It also claims that the construction is expected to support over 52,000 job-years over the construction period and about $3.6 billion in labour income.
But economists are questioning some of the claims in the study.
"The whole exercise is a massive exaggeration of what we can expect in terms of GDP and employment growth," said Marc Lee, a senior economist with the Canadian Centre for Policy Alternatives.
"Pretty much at every turn, they make assumptions that make their numbers much, much larger than they should be."
The Woodfibre LNG project is under construction at the site of an old pulp mill about seven kilometres southwest of Squamish. The facility will process and liquefy natural gas shipped by pipeline from northern B.C. for export to Asian markets. (Woodfibre LNG)
On WLNG's website, the company states 1,500 workers will be on-site at the peak of construction. Yet, the Deetken study projects the facility alone will generate 18,145 direct job years.
With a four-year building average of 1,500 workers on site, totally 6,000 job-years, Lee said the math in the study does not align with the WLNG website.
"It just seems like it's off by a substantial amount," Lee said. "You do the math. Like it just doesn't really add up."
University of B.C. environmental economics professor Werner Antweiler also puts a question mark on some of the job numbers.
"Certainly, the job numbers look a little bit suspiciously high, and I would definitely say that needs further investigation," Antweiler said.
"They seem to be looking at off-site workers ... that is not backed up by what is being reported."
WATCH | Squamish homeowners say LNG power line will 'completely' change their neighbourhood:
Squamish homeowners say LNG power line will ‘completely’ change their neighbourhood
https://www.cbc.ca/player/play/video/9.7378325
October 12|
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The study explains that one job-year represents one job held for one year, so a person who worked for four years at the site will be represented as four job-years.
Both economists also said that the study is misleading when it comes to the benefit of government revenue from taxes and royalties, which is projected at $11.6 billion.
"Seems to be just an added-up element over 40 years without any discounting," Antweiler said. "That's not how we do that. So this is basically an exaggeration."
The study showed that most of the corporate income tax revenue will not happen until the second half of the 40-year period.
"There's a good chance none of this will generate anything close to the numbers that are being touted in terms of royalties, or revenues, for B.C. and the federal government," Lee said.
According to Lee, the study would never be published in an academic journal.
"It would get laughed out of the room, honestly," Lee said. "The assumptions they make are just so heroic."
UBC environmental economics professor Werner Antweiler said the study on Woodfibre LNG in Howe Sound was not done by an independent think-tank, and that Deetken Insight was getting paid by WLNG. (Alanna Kelly/CBC)
The study does not include the cost of emissions, and Antweiler said it only looks at the benefits.
"You're not looking at any of the costs that you may be imposing on the community," Antweiler said.
A spokesperson for Woodfibre LNG said directly comparing the peak workforce during construction time to job years was a "bit of an apples and oranges comparison."
They argued that the peak number of 1,500 workers did not represent tradespeople who are off rotation, off-site workers or those not working on the pipeline project.
"Peak workforce also does not reflect people who have worked on the site previously or may work on the site in the future," the spokesperson said.
District of Squamish rejected deal
The study comes nearly one month after the District of Squamish rejected a deal that would have seen the operators of the Woodfibre LNG project contribute $142 million over 10 years.
According to the study, municipal tax arrangements between WLNG and the District of Squamish have not been concluded.
Construction for the Woodfibre LNG facility is expected to be completed in 2027.
[Top photo: Economists are questioning job and revenue projections in a study commissioned by the Woodfibre LNG project, which is nearing completion near Squamish. (Alanna Kelly/CBC)]
