Canada is rekindling its LNG ambitions with $109B in proposed projects, aiming to become a global exporter despite competition and environmental challenges.
LNG Development Gains Momentum in Canada
A decade after its liquefied natural gas (LNG) ambitions stalled, Canada is reigniting hopes of becoming a global LNG exporter. With seven projects in various stages of development, including the long-anticipated LNG Canada terminal now operational, the country could see up to $109 billion in capital investment, according to Natural Resources Canada.
New Infrastructure Driven by Renewed Policy and Demand
The timing aligns with a shift in political will and growing global energy needs. Governments at federal and provincial levels have passed new legislation to fast-track major infrastructure projects, hoping to reduce regulatory delays. Public sentiment has also softened toward pipeline and LNG development, amid rising energy demand driven by factors like data center growth and the global shift away from coal.
Indigenous-Led LNG Projects Lead the Charge
Among the most promising ventures is Ksi Lisims LNG, a floating export terminal proposed near the Nisga’a Nation’s community of Gingolx in British Columbia. Developed in partnership with Rockies LNG and Houston-based Western LNG, the project symbolizes economic opportunity and Indigenous leadership in Canada’s new LNG wave. Nisga’a Nation President Eva Clayton sees the project as a path to long-term prosperity, with a final investment decision expected later this year.
Legacy Challenges from Canada’s LNG False Start
Canada’s first LNG boom in the early 2010s faltered due to low commodity prices, regulatory barriers, and social opposition. Meanwhile, the U.S. seized the momentum, becoming the world’s top LNG exporter by streamlining its permitting processes and investing in infrastructure, beginning in 2016. Analysts like Ed Crooks of Wood Mackenzie argue Canada’s complex approval system and environmental pushback still pose barriers to catching up.
Environmental, Legal, and Social Pushback Lingers
Some communities remain wary. In Kispiox, 300 km from the coast, Chief Councillor Kolin Sutherland-Wilson warned that natural gas pipelines risk contaminating pristine waterways vital to salmon and steelhead populations. His community is legally challenging pipeline approvals tied to Ksi Lisims, underscoring the lingering friction between development and conservation.
Global Competition Adds Pressure
Canada’s push comes as the U.S. supports a $50 billion LNG megaproject in Alaska, with backing from the White House and $30 billion USD in loan guarantees. Energy experts caution that delays could cost Canada its competitive edge. “The clock is definitely ticking,” said Dulles Wang of Wood Mackenzie, noting Asian demand is expected to peak within the next decade before renewables potentially dominate.
A Tipping Point for Canada’s LNG Future
With LNG Canada already shipping and Ksi Lisims eyeing a 2029 start, Canada is closer than ever to reviving its place on the LNG map. Still, the path is precarious—intertwined with environmental scrutiny, political will, and global market forces. Whether Canada can cement itself as a key LNG supplier will be determined in the next few critical years.
For continuous coverage and real-time updates, keep following Maple News Wire.
