Years late, but not a moment too soon.Canada is on the brink of a historic breakthrough in energy exports as LNG Canada nears completion, positioning the country to sidestep the newly imposed 10% US tariffs on energy while opening doors to a global market that has long been out of reach.The arrival of the 204-metre LNG carrier Maran Gas Roxana at the Kitimat terminal this week marks a significant milestone in the $40-billion project. The Greek-flagged vessel carried liquefied natural gas (LNG) needed for equipment testing at the plant, a final step before Canada begins exporting LNG for the first time in mid-2025..With an initial export capacity of 14 million tonnes per year — expected to double to 28 million tonnes annually in a proposed second phase — LNG Canada represents a long-awaited opportunity for Canada to diversify its energy exports beyond the United States.“This is a transformative moment for Canada,” Teresa Waddington, the company’s vice-president of corporate relations said in a statemet. “For the first time in our history, Canadian natural gas will find markets beyond North America.”Canada is the fifth-largest producer of natural gas, with estimated reserves of 93 trillion cubic metres — more than 3.2 quadrillion cubic feet — mostly in British Columbia and Alberta. .Key Facts:• LNG Canada will export 14 million tonnes per year, doubling to 28 million tonnes in Phase 2.• Canada has 93 trillion cubic metres of natural gas reserves, mostly in BC and Alberta.• The US is the world’s largest LNG exporter, with exports surging nearly 500% in a decade.• LNG Canada is backed by Shell, Petronas, PetroChina, Mitsubishi, and Korea Gas Corp..Yet, despite vast resources, the country has relied almost exclusively on the US as its sole customer. Presently, over 99% of Canadian natural gas exports flow south, where they compete with booming Lower 48 shale production.Meanwhile, the Americans have rapidly capitalized on global demand, becoming the world’s largest LNG exporter — shipments have soared nearly 500% over the past decade after the lifitng of the oil and gas export ban. More than a dozen LNG terminals have been built in the U.S. since the early 2010s, while Canada has struggled with regulatory hurdles and opposition. LNG Canada is the first of six proposed projects in Canada, but it remains the only one under construction, compared to the US, which has more than a dozen operational facilities in the Gulf of Mexico..“If Canada had moved faster, we would already be a major LNG player,” said a Canadian energy executive. “Instead, we’re just getting started while the US dominates the market.”The timing of LNG Canada’s launch is especially critical given the escalating trade tensions between the US and its key partners, including Canada. President Donald Trump’s sweeping new tariffs — including a 10% levy on Canadian energy exports — have further strained relations and raised fears of retaliatory measures from key buyers, including China, Japan and South Korea.As a result, international energy companies are looking for stable, tariff-free alternatives to American LNG. Backed by global energy giants Shell, Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation and Korea Gas Corporation, LNG Canada offers exactly that..And unlike the US which has to ship volumes through the Panama Canal, Canada is the only North American country other than Mexico with a functioning LNG port on the West Coast.Asian markets, where demand for LNG is surging, are particularly attractive. Japan, the world’s largest LNG importer, South Korea, and China have all been ramping up LNG purchases as they transition away from coal-fired power.“Given the trade war dynamics, Canada’s LNG projects have a clear strategic advantage,” said the analyst. “If the US gets caught in more tariff battles, buyers will increasingly turn to Canada as a stable supplier.”Despite the economic potential, LNG Canada faces continued criticism from environmental groups and Indigenous activists who argue the project contradicts Canada’s climate commitments. The facility will receive natural gas via the 670-kilometre Coastal GasLink from Dawson Creek, raising concerns about increased fracking and emissions..“Building massive LNG terminals locks in fossil fuel dependence at a time when we need to be cutting emissions,” said Grand Chief Stewart Phillip, president of the Union of B.C. Indian Chiefs.With first exports expected in mid-2025, LNG Canada is already laying the groundwork for its second phase, which would double output and further integrate Canada into global energy markets.The proposed Phase 2 expansion of LNG Canada alone would require nearly half the electricity output of the newly completed Site C dam. While the company has hinted at potential future electrification of the plant’s gas turbines, it acknowledges that BC’s hydroelectric grid would need significant upgrades before that happens.
