Canada, striving to become an energy superpower

The era of Canadian liquefied natural gas (LNG) has officially begun. In addition to oil, Canada is also one of the world’s major producers and exporters of natural gas. As of January 1, 2020, Canada’s remaining proven natural gas reserves stood at 24 trillion cubic meters—ranking among the world’s highest and matching Australia’s reserves. In 2024, Canada produced 194.2 billion cubic meters of natural gas, ranking fifth globally—behind the United States, Russia, Iran, and China—and ahead of Australia, the world’s second-largest LNG exporter. On October 1, 2025, Rystad Energy, an industry research firm, published an article titled “The Era of Canadian LNG Has Officially Begun” on the website OilPrice.com. Rystad Energy noted that Canadian LNG projects shipped their first cargo on June 30, 2025, marking Canada’s formal entry into the ranks of LNG-exporting nations after six years of development. By the mid-2030s, projects such as Woodfibre LNG, Cedar LNG, and Ksi Lisims LNG could raise Canada’s total LNG liquefaction capacity to 6.1 billion cubic feet per day. On June 30, 2025, the long-awaited Canadian LNG facility exported its first shipment of liquefied natural gas from its plant in Kitimat, British Columbia—signaling Canada’s official accession to the LNG-exporting club. The Canada LNG project is a joint venture involving Shell (40%, lead partner), Petronas (25%), PetroChina (15%), Mitsubishi (15%), and KOGAS (5%). It achieved a major milestone six years after its final investment decision. Natural gas prices in Western Canada remain very low, primarily due to oversupply by producers pursuing aggressive growth plans, coupled with bottlenecks in transporting gas both within the basin and to other markets. Consequently, producers have been awaiting the launch of Canadian LNG projects to boost output and lift prices. However, as Rystad Energy analysts wrote in October 2024, robust 2025 production plans by Canada’s major operators—combined with high activity levels among smaller private producers—mean that even with the launch of the Canada LNG project, the market will remain oversupplied. Indeed, this situation has already materialized in 2025: since the Canada LNG project began operations, 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 do play a role—summer typically brings weaker basin demand and thus lower gas prices. Moreover, although feedgas demand from the Canada LNG project has increased, the market remains fundamentally oversupplied. So far, new facilities frequently encounter operational issues, resulting in slow ramp-up of production at the Canada LNG plant. In early August 2025, operational problems with a gas turbine reduced Line 1’s utilization rate to nearly 50%, slowing cargo loading. In August, shipments averaged one cargo every nine days—compared to one cargo every four days per production line under full-capacity operation.

What impact will the commencement of operations at Canada’s first large-scale LNG export facility have on Canada’s energy exports and the global energy market?

Why attend the Canadian Gas & LNG Exhibition? By exhibiting, you will: • Build new business relationships 75% of CGLNG attendees are decision-makers. • Enhance your company’s visibility Join 5,000 international visitors from 67 countries—including 500 delegates and over 140 speakers. • Expand your exposure Benefit from various tools designed to connect you with the most relevant attendees—including the exhibitor list, booth floor plan, and more. • Align your business with leading industry players Join exhibitors and sponsors such as FortisBC, Enbridge, Woodfibre LNG, Fasken, Contract, Worley, and others. Market analysis: Canada’s first LNG cargo departed Kitimat—and everything changed. Three decades of debate gave way to action; the question shifted from whether Canada would participate in global gas trade to how quickly, at what scale, and on whose terms. The 2027 Canadian Gas & LNG Exhibition and Conference is where these decisions will be made. Phase I of the Canada LNG project is now operating at full capacity. Train 2 was handed over in December 2025, delivering an annual export capacity of 14 million tonnes to the Pacific coast. The Coastal GasLink pipeline is complete. Canada’s first West Coast natural gas pipeline in 70 years is now operational; negotiations for Phase II expansion are underway. Cedar LNG has entered its peak construction phase. The world’s first Indigenous-majority-owned LNG project is scheduled to commence operations by late 2028. The International Olympic Committee has regained confidence. Shell’s acquisition of ARC Resources signals renewed upstream confidence in Western Canada’s economy. Ottawa has extended LNG export licenses to 50 years and referred Phase II to the newly established Major Projects Office for accelerated review. Asian buyers are actively re-signing contracts. Utilities in Japan, South Korea, and Southeast Asia are diversifying supply away from concentrated risks in the Middle East and Russia—and Canada is the answer. Canada possesses abundant natural gas resources. According to Natural Resources Canada, proven reserves stand at approximately 22 trillion cubic meters, while technically recoverable resources range between 250 and 500 trillion cubic meters—sufficient to sustain production for over 200 years. Its primary gas-producing regions lie in the western sedimentary basins of British Columbia (BC), Alberta, and Saskatchewan; smaller-scale production also occurs in Ontario, New Brunswick, and Nunavut. (BC claims provincial reserves of 85 trillion cubic meters.) Canada ranks as the world’s fifth-largest natural gas producer, accounting for roughly 5% of global output. From 2015 to 2017, Canada’s national natural gas production totaled 152.7 billion, 155.3 billion, and 159.8 billion cubic meters annually—over half of which was exported to the U.S. market. According to Statistics Canada’s National Energy Board, Canada’s natural gas exports to the U.S. from 2015 to 2017 amounted to 76 billion, 84.3 billion, and 85.2 billion cubic meters respectively—representing over half of annual domestic production—and valued at CAD 9.8 billion, CAD 8.8 billion, and CAD 10.3 billion. Over the same period, Canada’s natural gas imports from the U.S. totaled 19.2 billion, 21.9 billion, and 24.9 billion cubic meters, valued at CAD 2.7 billion, CAD 2.7 billion, and CAD 3.6 billion respectively.

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