Canada aims to become a leading LNG exporter, targeting 100M tonnes yearly, with B.C. and Atlantic projects driving growth despite climate concerns.
Canada Aims to Become a Global LNG Powerhouse
Canada is gearing up to secure a major role in the global liquefied natural gas (LNG) market. Energy Minister Tim Hodgson recently told Parliament that the country could eventually export up to 100 million tonnes of LNG annually, putting it among the world’s largest suppliers.
Markets in Japan, South Korea, China, and India are already showing strong interest, Hodgson said, signalling a huge opportunity for Canadian energy exports.
“If we deliver, as we hope proponents would deliver, up to 100 million tonnes per annum, that would make us one of the largest suppliers of LNG in the world,” Hodgson explained.
Current Projects Fall Short of the Target
Reaching 100 million tonnes per year is ambitious. Existing LNG projects in British Columbia, including LNG Canada’s first terminal, Cedar LNG, and Woodfibre LNG, would together produce less than half that volume once fully operational.
Canada’s first operational terminal, LNG Canada in Kitimat, B.C., started shipping in June and has set the stage for additional projects. Proposed expansions like LNG Canada Phase 2 and the Ksi Lisims floating terminal—led by the Nisga’a Nation near Gingolx—could add significant export capacity, but more projects will be necessary to meet Hodgson’s goal.
Atlantic Canada Eyes LNG Growth
Beyond B.C., Marinvest Energy Canada is exploring an LNG plant and pipeline in Baie-Comeau, Quebec. Meanwhile, Fermeuse Energy Limited is developing Newfoundland’s offshore gas reserves into LNG for export. Combined, these Atlantic initiatives could further bolster Canada’s potential to reach its ambitious 100-million-tonne target.
LNG as a “Transition Fuel”
Hodgson emphasised that Canadian LNG is seen internationally as a low-emission, transitional energy source. Cold Canadian climates reduce the energy needed to liquefy natural gas, while shorter shipping distances to Asia cut tanker fuel use compared to Atlantic routes.
“From an economic perspective, LNG projects are among the most impactful we can pursue,” Hodgson said.
Environmental Concerns Remain
Despite promises of “low-emission LNG,” critics caution against overstating the environmental benefits. The International Institute for Sustainable Development notes that LNG Canada Phase 1 alone could emit 2.1 million tonnes of greenhouse gases annually, equivalent to 450,000 passenger vehicles.
While future B.C. projects like Woodfibre, Cedar, and Ksi Lisims plan to use hydroelectricity to reach net-zero operations, life-cycle emissions—including extraction, shipping, and burning—remain significant.
“LNG is a fossil fuel. It emits greenhouse gases across its entire value chain,” said Steven Haig, a policy adviser with the institute. “It is not a climate solution in itself.”
The Road Ahead
Canada is now positioned at a crossroads: pursue ambitious LNG growth to meet rising global demand or balance expansion with the environmental impacts of fossil fuel production. With projects underway across British Columbia, Quebec, and Newfoundland, the coming decade will determine whether Canada can truly become a global LNG heavyweight—or if climate concerns will temper its ambitions.
