Canada Poised to Become ‘One of the Largest Suppliers of LNG in the World,’ Energy Minister Says

By: Ebenezer Adu-Gyamfi / Emmanuel Ayiku for GhanaianNewsCanada

Canada is positioning itself to become a major global supplier of liquefied natural gas (LNG), with the potential to export up to 100 million tonnes annually — a volume that would place the country among the top exporters worldwide, according to the federal Minister of Energy and Natural Resources, Tim Hodgson.

In remarks to a parliamentary committee earlier this month, Hodgson described Canada’s LNG opportunities as a “once-in-a-generation” economic prospect, saying there is strong interest from overseas partners — notably nations in Asia such as Japan, South Korea, China and India — looking to import Canadian gas.

Boosting Canada’s Export Ambitions

“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 told lawmakers this month, highlighting both existing and proposed projects that could fuel the surge.

Achieving that scale will require a dramatic expansion beyond Canada’s current export capacity. At present, the projects under construction in British Columbia — including LNG Canada, Woodfibre LNG, and Cedar LNG — would together provide less than 50 million tonnes per year even at full capacity.

Canada is already the world’s sixth-largest LNG exporter, trailing leaders such as Australia and Qatar. To reach the minister’s 100 million-tonne target, additional facilities and investment decisions beyond current constructions will be necessary.

Key Projects Under Development

One of the anchor projects in Canada’s LNG push is LNG Canada, the country’s first large-scale export terminal located in Kitimat, British Columbia. First shipments from this facility were expected in 2025, marking Canada’s entry into global LNG markets at scale.

Other proposed initiatives include:

• LNG Canada Phase 2 and Ksi Lisims LNG, both referred to the federal Major Projects Office and expected to expand export capacity significantly.

• Woodfibre LNG, located near Squamish, B.C., which aims for completion by 2027 and would add millions of tonnes per year when complete.

• Cedar LNG, a floating facility in Kitimat backed in part by the Haisla Nation and partners, that has secured export licensing and is targeting operations in the late 2020s.

Projects such as these, once operational, could help elevate Canada’s presence in the LNG export market — particularly to Asian and European customers seeking diversified sources of natural gas.

Economic and Environmental Context

Canada’s push into LNG comes at a time of rising global demand for liquefied natural gas, driven in part by countries transitioning away from more carbon-intensive fuels like coal. LNG is often seen as a “transition fuel” that can help bridge the gap to cleaner energy sources.

Hodgson noted that many global allies view Canadian LNG favorably because its production can leverage cold, energy-efficient conditions and shorter shipping routes to Asia compared with competitors, potentially lowering emissions associated with transport.

However, critics caution against overstating the environmental benefits. Analyses by independent think-tanks highlight that some LNG operations — including the first phase of LNG Canada — still produce significant lifecycle greenhouse gas emissions, particularly from fuel used in cooling, extraction, and shipping.

Looking Ahead

Canada’s government is also seeking to diversify export markets and reduce reliance on any single trading partner, including expanding energy ties with growing economies such as India, where demand for LNG is rapidly increasing.

While reaching the ambitious goal of exporting 100 million tonnes of LNG annually will require sustained investment, policy support, and completion of major energy projects, Ottawa’s current strategy reflects a broader vision of expanded global engagement and economic opportunity in the energy sector.