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- calendar_today November 12, 2026
Canada’s Current Position in the LNG Industry
Canada's lone liquified natural gas (LNG) export facility began operations last year, but a new report from S&P Global suggests that the country is poised for significant growth in the sector. With a stated federal goal of boosting LNG exports to over 100 million tonnes annually, Canada could become a leading global exporter of natural gas.
Potential Economic Impact
The S&P Global report, released Thursday, indicates that achieving the government's LNG export target could generate nearly a quarter million jobs per year and attract close to $1 trillion in investment for the Canadian natural gas industry by 2050. Daniel Yergin, vice-chairman of S&P Global, stated in an interview that overcoming Canada's regulatory and cost-related hurdles could lead to substantial economic benefits and reduce the country’s reliance on the United States as its primary trading partner.
Challenges Facing Canadian LNG Expansion
Despite its potential, Canada faces several significant challenges in expanding its LNG industry. These include a lengthy permitting process, limited proposed projects from the private sector, and high costs associated with building necessary infrastructure. The S&P Global report notes that Canada's permitting process for energy projects is, on average, 27 months longer than similar processes in Texas. Additionally, pipelines in Canada cost about 160 percent more to build compared to US counterparts. Pipeline construction, such as the Coastal GasLink project developed by TC Energy and partly owned by local First Nations, has faced delays, cost overruns, and opposition from various Indigenous communities and environmental groups.
Growth Prospects and Industry Advantages
Western Canada's abundant natural gas reserves can be produced at some of the lowest costs in North America. LNG Canada, currently the country’s only operational export facility, recently moved forward with a second phase that could double its export capacity. In total, six additional LNG facilities are under construction or in development, which would raise potential output to just over 50 million tonnes per year if completed.
According to Daniel Yergin, Canada's geographical proximity to Asian markets and its resource base create strategic advantages. Asian buyers, as well as other international markets, have shown strong interest in Canadian LNG, especially given disruptions in global natural gas supply from events such as the conflict in the Middle East and rising gas prices in Europe.
Government Response and Industry Support
To address regulatory delays, the federal government has introduced new legislation aimed at accelerating the permitting process for major energy projects. However, Yergin emphasized that investors need evidence of real reform before making significant commitments to new LNG infrastructure.
Further, S&P Global found that LNG produced in Canada has 55 percent lower greenhouse gas intensity compared to similar projects in other countries, positioning Canadian LNG as a lower-emission option for global buyers. Demand for natural gas is expected to increase globally due to factors such as global population growth, rising power consumption from artificial intelligence data centres, and increasing air conditioning use.
Outlook for Canada's LNG Sector
While there are substantial obstacles, including competition from other countries and Canada’s existing regulatory and infrastructure challenges, the S&P Global report highlights the significant potential for Canada to become a global leader in LNG exports. The next several years will be critical in determining whether Canada can capitalize on these opportunities and strengthen its position in the global LNG market.
Source: cbc.ca.
