Canada, striving to become an energy superpower

However, as Rystad Energy analysts wrote in October 2024, robust 2025 production plans from Canada’s major operators—combined with high activity levels among smaller private producers—mean the market will remain oversupplied even after the startup of Canadian LNG projects. Indeed, this oversupply has already materialized in 2025. Since the launch of the Canada LNG project, the average spot price at the Alberta Energy Exchange (AECO) over the past three months has hovered near USD 0.55 per million British thermal units (MMBtu). Seasonal factors have indeed played a role, as natural gas prices tend to be lower during summer months when basin-wide demand is weaker; additionally, although feedgas demand from the Canadian LNG project has increased, the market remains fundamentally oversupplied. So far, output ramp-up at Canadian LNG plants has been slow, largely due to operational issues frequently encountered at new facilities. In early August 2025, Line 1’s utilization rate fell to nearly 50% due to a gas turbine malfunction, slowing cargo loading at the Canada LNG project; in August, cargoes were shipped on average once every nine days, whereas each production line—when operating at full capacity—would export one cargo every four days. Although feedgas shipment volumes reportedly rose to around 80% by late August—suggesting accelerated cargo loading—the shipment pace remained unchanged through early September 2025. Looking ahead, Rystad Energy expects the first LNG train of the Canada LNG project to reach full capacity by late October 2025, with the second train beginning its ramp-up in November and the entire facility achieving full capacity by May 2026. Although the Canada LNG project will require 1.8 billion cubic feet per day (bcf/d) of feedgas at full capacity, the short-term outlook for AECO prices remains bearish, as numerous participants in the Montney formation in British Columbia can readily increase output—supported by decades of low breakeven inventory levels. Even though LNG demand is rising, it is likely to be quickly offset by increased production from suppliers. The Canada LNG project—the country’s first large-scale LNG export venture—exports natural gas from Canada’s Pacific coast to global markets, helping diversify Canada’s current overreliance on the U.S. export market. Since U.S. President Donald Trump assumed office and launched a series of trade restrictions and threats against Canada–U.S. commerce, export diversification has become a top federal government priority. The future outlook for Canada LNG is promising. Woodfibre LNG and Cedar LNG are two projects currently under development, expected to commence operations in 2027 and 2029 respectively, adding an additional 700 million cubic feet per day (mmcf/d) of feedgas demand. Recent regulatory progress has also been achieved ahead of final investment decisions for both projects. Phase Two of the Canada LNG project was selected among the first batch of infrastructure projects fast-tracked for approval by the federal government’s Major Projects Office, while Ksi Lisims LNG received approvals from both the British Columbia and federal governments under the Impact Assessment Act.

What is humanity’s largest and most complex engineering project?

In response to its neighbors’ aggressive advancement, Dubai opted for an even bolder countermove. Whether measured by throughput capacity, facility scale, or future development potential, Al Maktoum International Airport represents yet another miracle forged by the city in the desert. Seventh place goes to the largest natural gas project. Canada’s LNG Canada project is the largest and highest-investment energy project in Canadian history—and a landmark initiative marking Canada’s first genuine participation in global LNG exports. Spearheaded jointly by five major international energy companies, this project is reshaping the map of North American natural gas exports. Located in Kitimat, British Columbia, the LNG Canada project carries a total investment of USD 40 billion, led by Shell with a 40% stake; other shareholders include Petronas, China National Petroleum Corporation (CNPC), Mitsubishi Corporation, and Korea Gas Corporation (KOGAS). At its core, the project transports natural gas from the Montney formation near Dawson Creek via the 670-kilometer-long Coastal GasLink pipeline to the liquefaction terminal in Kitimat, where it undergoes processing, cooling, storage, and ultimately export to Asian markets through newly built port facilities. Phase One will construct two liquefaction trains with a combined annual capacity of 14 million tonnes of LNG, with plans to expand to 26 million tonnes in the future. This is not merely a technical engineering challenge—it is also a critical component of global energy strategy. Compared with multiple LNG export terminals already operating along the U.S. Gulf Coast and Atlantic seaboard, Canada entered the LNG export arena somewhat later; however, the scale and efficiency of the LNG Canada project position it to rapidly emerge as a key export hub on North America’s West Coast—particularly ensuring stable natural gas supply to Asian markets. Against the backdrop of the Russia–Ukraine war, this project holds significant geopolitical energy significance. However, the LNG Canada project has also drawn environmental controversy. Reports indicate that Phase One alone will emit approximately 4 million tonnes of greenhouse gases annually—equivalent to the yearly emissions of 850,000 automobiles. Such emissions will make it more challenging for British Columbia to meet its emissions-reduction targets. The project proponents assert that globally best-practice design has been adopted, yielding a carbon intensity of just 0.15 tonnes of CO₂-equivalent per tonne of LNG—well below the global average of 0.26–0.35 tonnes. Moreover, the project partially utilizes clean hydroelectric power supplied by BC Hydro, placing its overall emissions intensity among the lowest globally for comparable projects. The project received its Environmental Assessment Certificate in 2015 and commits to continuous monitoring and public disclosure of environmental impacts throughout its lifecycle. The BC provincial government forecasts CAD 23 billion in fiscal revenue from the project—but this includes over CAD 5.3 billion in tax incentives and subsidies, covering carbon tax exemptions, provincial sales tax waivers, and new transmission lines built to support natural gas extraction. As of November 2019, contracts valued at CAD 1 billion had already been awarded to local BC businesses, of which CAD 558 million flowed directly to Indigenous enterprises in Kitimat and surrounding areas—especially the Hazelton community. The project adheres to a ‘local-first’ hiring principle, integrating training and employment programs to maximize socioeconomic benefits for local communities. When LNG vessels ply the waters between Douglas Channel and Asia, Canada will, for the first time, assume a prominent position in the global energy landscape—as a major LNG exporting nation.

Shell-led LNG Canada greenlights Phase 2 expansion, doubling export capacity

Sep 29, 2026

Shell and partners approved Phase 2 of the LNG Canada project, doubling export capacity to 28 million tonnes per annum with operations targeted for the early 2030s. This expansion positions Canada among the world's largest LNG exporters.

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