LNG in Canada

LNG in Canada

Canada is a vast country with an immense wealth of resources, including natural gas. As the world’s fifth-largest natural gas producer, sixth-largest exporter, and ninth-largest reserve holder [1], we have more than enough of this resource to meet our domestic needs and also share with the world. This is where LNG in Canada (liquefied natural gas) can play an instrumental role in helping us get more of this critical energy source to global markets – by shipping off our western and eastern coasts.

With global LNG demand expected to double by 2050 [2], it only makes sense for Canada to step up and supply the world with the natural gas it needs. As a reliable and democratic supplier, Canadian LNG has long been sought by many of our trade partners, including Germany, Poland, Latvia, Japan, Ukraine, South Korea, and the European Union as a whole. This would benefit Canadians by providing long-term job and business opportunities, while generating government revenues through taxes and royalties to pay for our social programs such as healthcare and education.

We have a massive opportunity to be a top global LNG supplier, which would create significant wealth and prosperity for many generations of Canadians. With one plant (LNG Canada) operational and a handful of others underway, the question remains: will we take our place as a trusted natural gas supplier to Asia,  Europe, and other regions abroad, or will we let this chance dither away – like we have in the past?

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What is Liquefied Natural Gas Anyway?

LNG’s name is somewhat self-explanatory; LNG is natural gas that has been cooled to a liquid form for easier storage and transport. The process, known as liquefaction, involves cooling natural gas feedstock to -162° Celsius (-260° Fahrenheit) [3]. The volume of the natural gas is reduced by about 600 times, and in a liquid state, the gas becomes less prone to ignition, making it much safer for long-distance transport.

Once Canada’s LNG exports, for example, reach their destination via specialized ocean-faring tankers, it is returned to a gaseous state in a process called regasification. The natural gas is then fed into local pipeline systems to be delivered to homes, businesses, and industry for heating, power generation, and a variety of manufacturing processes.

Canada’s LNG Projects

89 percent of Canadians say they want more refineries and LNG terminals

LNG Canada Phase 1

  • Location: Land facility in Kitimat, British Columbia.
  • Export Capacity: 14 million tonnes per annum (mtpa), or 1.84 billion cubic feet per day (bcf/d), over 40 years
  • Stage: Complete in 2025, now operating.

LNG Canada Phase 2

  • Location: Land facility in Kitimat, British Columbia, as an expansion of Phase 1.
  • Export Capacity: Proposed to double the facility's output, adding another 14 mtpa (1.84 bcf/d) over 40 years
  • Stage: The project remains under review by its joint venture partners. A final investment decision (FID) has not yet been made. 

Woodfibre LNG

  • Location: Land facility southwest of Squamish, British Columbia, at the site of a former pulp mill.
  • Export Capacity:1 mtpa, or 0.28 bcf/d over 40 years
  • Stage: Construction is underway, with a targeted start of operations in 2027. The facility is designed to be one of the lowest-emission LNG plants in the world by using renewable hydroelectricity. 

Cedar LNG

  • Location: Floating LNG facility in Kitimat, British Columbia, within the traditional territory of the Haisla Nation.
  • Export Capacity:3 mtpa, or 0.39 bcf/d over 25 years
  • Stage: A positive Final Investment Decision (FID) was announced in June 2024, with early construction work beginning shortly after. Operations are anticipated to start in late 2028. 

Ksi Lisims LNG

  • Location: Proposed floating LNG facility on Pearse Island, British Columbia, near the community of Gingolx.
  • Export Capacity: 12 mtpa, or 1.58 bcf/d, over 40 years
  • Stage: The project is undergoing an environmental assessment and is engaged in regulatory processes. An FID and construction start are contingent on regulatory approvals. 

Tilbury LNG Phase 2

  • Location: Existing land FortisBC LNG facility on Tilbury Island in Delta, British Columbia.
  • Export Capacity: The expansion would add up to 2.5 mtpa (0.33 bcf/d) for export over 25 years, in addition to increasing storage capacity for domestic use
  • Stage: The project is awaiting regulatory approvals and FID.

Summit Lake PG LNG

  • Location: An inland site near Summit Lake, approximately 30 kilometres north of Prince George, British Columbia.
  • Export Capacity: 7 mtpa.
  • Stage: The project is undergoing an environmental assessment process. Unlike coastal facilities, this project plans to transport liquefied natural gas by rail to Prince Rupert for export. 

Quebec LNG Project

A subsidiary of a Norwegian energy company wants to build an LNG export facility in Quebec, in the Baie-Comeau region, along the north shore of the St. Lawrence River. Marinvest Energy Canada says there is a strong business case for the project to export natural gas to European markets [5].

Newfoundland & Labrador LNG Project

The federal government’s changing stance on LNG has brought another potential project to the forefront, this time in Newfoundland and Labrador [6]. Proposed by Fermeuse Energy Limited,

Cancelled LNG Projects in Canada

Countries with the largest LNG export capacity as of 2024

While the federal government has recently shifted its tone on LNG in Canada, support for the emerging industry hasn’t always been the case. Over the past several years, many proposed Canadian LNG projects were cancelled due to regulatory purgatory and high initial costs, representing hundreds of billions of dollars in lost investment. Those projects include, but are not limited to:

  • Aurora LNG
  • Bear Head LNG
  • Discovery LNG
  • Douglas Channel LNG
  • Goldboro LNG
  • Grassy Point LNG
  • Jordan Cove LNG
  • Kitsault LNG
  • Kitimat LNG
  • Kwispaa LNG
  • Orca LNG
  • Pacific Northwest LNG
  • Prince Rupert LNG
  • Steelhead LNG
  • Saguenay LNG
  • Triton LNG
  • WCC LNG

In fact, as of the early 2010s, there were 18 LNG projects proposed in British Columbia alone [4]. Today, just one of these projects has made it to the finish line: LNG Canada Phase 1, which began operations in late June of 2025.

Canadian LNG is Indigenous LNG

Canadian LNG is Indigenous LNG says Karen Ogen

Canadian LNG is more than just an opportunity for Canadians; it has also played an irreplaceable role in economic reconciliation with First Nations. Cedar LNG, for example, one of Canada’s current projects underway, is the largest majority Indigenous-owned infrastructure project in the country. In fact, Canadian LNG is Indigenous LNG, say Indigenous proponents.

Crystal Smith, who at the time of the quote below was the elected chief councillor of the Haisla Nation (the main proponent of Cedar LNG), is a fierce advocate for LNG development.

“If left to climate activists, Indigenous people would be the last to benefit, the last to participate, and the last to be connected to new infrastructure,” Smith said in 2023, referring to non-governmental organizations’ opposition to LNG projects in B.C. [7]

“But not this time. First Nations will be full participants in the future. Not the cold, dark future that eco-colonialism offers, but a fair and prosperous future that Indigenous people helped plan, design and build,” Smith continued.

LNG in Canada, particularly development in British Columbia, is providing once-in-a-generation opportunities for First Nations to generate own-source revenues and uplift the socio-economic status of their communities. The Coastal GasLink is just one of many examples, a project in which 17 of 20 First Nations along the pipeline’s route now have a 10 per cent equity stake. LNG Canada, the largest private sector investment in Canadian history, has also spent billions of dollars on local and Indigenous businesses.

“LNG provides us with an opportunity where we can own our future,” says Karen Ogen, CEO of the First Nations LNG Alliance [8].

“There is a global need for Canadian LNG. And there is no Canadian LNG unless it’s Indigenous LNG. Indigenous people will be at the heart of it.”

Global LNG Demand Growth

Global LNG demand projected to grow 60% by 2040 according to latest industry outlook

Global demand for liquefied natural gas is surging, with projections indicating it could increase by over 60% by 2040, and double by 2050 as nations seek to diversify their energy sources [2]. Much of this growth is driven by developing economies in Asia, which are expected to account for the majority of the world's increasing energy demand through 2050.

Nations like Japan and South Korea are actively seeking to secure long-term, stable energy supplies and have expressed a strong interest in Canadian LNG. Similarly, following geopolitical instability, European countries such as Germany and Poland are urgently seeking to diversify their gas supplies away from unreliable sources.

The world’s rapidly shifting energy systems we see today have created an immense window of opportunity for Canadian LNG to play an instrumental role in providing the world with a secure supply, offering a reliable source of natural gas to meet the growing needs of our trade partners.

Canada’s LNG Opportunity

What nations want or support Canadian LNG

Canada has a generational opportunity to become a global LNG powerhouse, leveraging our vast natural gas reserves to create lasting prosperity for our families. The economic benefits are immense; a robust LNG sector in British Columbia alone has been projected to generate over $90 billion in government revenues and create more than 71,000 jobs through to 2064.

Major projects like LNG Canada are already expected to contribute significantly to our economy, with BC Premier Eby stating that the project would boost national GDP by 0.4% while creating billions of dollars more in added benefits.

As a stable, democratic nation, Canada is the reliable energy partner the world is looking for. By stepping up to meet global demand, we can secure our own economic future and also provide Europe and Asia with a secure energy supply, displacing less reliable producers abroad.

Canadian LNG will also allow us to diversify our export markets, reduce our reliance on the U.S., strengthen our economic independence, support economic reconciliation with First Nations, and maximize the value of our resources – all at once.

LNG in Canada is a win across the board. Join us today to learn more!

LNG in Canada: Frequently Asked Questions

European-27 LNG imports by country in 2024 - the world needs more Canadian-made LNG

How many LNG projects are there in Canada?

Canada currently has seven projects under construction or proposed, all of which are in British Columbia. Recently, an additional two eastern LNG projects have been reported on, one in Newfoundland and Labrador, another in Quebec - although it is unclear if these projects will find financing and apply for permits.

Why is Canada not exporting LNG?

 As of June 30th, 2025, Canada is exporting liquefied natural gas via the LNG Canada Phase 1 project located in Kitimat, British Columbia. 

How many operational LNG terminals does Canada have?

LNG Canada is the only current operational export facility operating in the country, with an annual capacity of 14 million tonnes per annum (mtpa). By 2030, Woodfibre LNG, Cedar LNG, and Ksi Lisims LNG - all also located in B.C. - should be operational if plans go accordingly.

Which Canadian provinces have LNG export facilities?

British Columbia is the only current province with an operational LNG facility, despite several east coast LNG projects being proposed over the years in Quebec, Nova Scotia, and other provinces.

Which Canadian province has the most natural gas?

Alberta is home to Canada's largest natural gas reserves, with British Columbia coming in second. Other provinces, such as Quebec and offshore Nova Scotia, also have vast gas reserves, but have not pursued the development of these resources for a variety of reasons.

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SOURCES:

1 - https://financialpost.com/commodities/energy/oil-gas/alberta-major-revision-oil-gas-reserve-estimates

2 – https://corporate.exxonmobil.com/sustainability-and-reports/global-outlook

3 - https://www.eia.gov/energyexplained/natural-gas/liquefied-natural-gas.php

4 - https://www.biv.com/news/resources-agriculture/whatever-happened-bcs-100-billion-lng-industry-8267791

5 - https://www.cbc.ca/news/canada/montreal/norwegian-lng-quebec-1.7577588

6 - https://www.cbc.ca/news/canada/newfoundland-labrador/fermeuse-energy-lng-1.7625062

7 - https://www.indigenousresourcenetwork.ca/climate_activists_don_t_speak_for_all_indigenous_people

8 - https://indigenouslng.ca/