To build a stronger nation, Canada must harness its greatest natural advantages; few are as globally significant as our vast natural gas reserves. Developing a healthy liquefied natural gas (LNG) industry is a direct path to strengthening our economy, our communities, and our position on the world stage.
The following eight points demonstrate how embracing LNG development on Canada’s coastlines will forge a more resilient, independent, and prosperous Canada for decades to come.
A robust West Coast LNG sector, with 56 million tonnes per annum of export capacity (mtpa), could boost Canada’s GDP by $11 billion annually. This totals more than $500 billion in potential economic activity over the lifetime of these projects between 2020 and 2064 [1]. Today, Canada has just over 50 mtpa of capacity underway at some stage of development.
It is worth noting that, at one point, Canada had more than 200 mtpa of capacity proposed, which would have created unimaginable wealth for Canadians. A notable example of such wealth generation is in the U.S. LNG sector, which is ahead of us by a decade in terms of development. The Americans have seen $586 billion added to the U.S. economy since 2016 from LNG, and the sector is projected to add $1.86 trillion and nearly 500,000 jobs through 2040.
While Canada has been slower to enter the global LNG market, the timeline to capture this economic opportunity remains critical. Delays in developing major natural gas infrastructure have resulted in significant foregone prosperity for Canadians. It's time to support the LNG industry and its economic benefits, making Canada stronger and more independent in the process.
Natural gas infrastructure projects, such as Coastal GasLink, the supply pipeline for LNG Canada and Cedar LNG, create lasting economic opportunities for rural communities. The numbers behind CGL are impressive: 25,700+ full-time equivalent jobs created in B.C., $1.8 billion awarded to local and Indigenous businesses, $13 million invested in local communities, and $26 million annually in property taxes during operations [2].
A historic agreement has given 17 First Nations along the route a 10% equity stake in CGL, ensuring these communities are long-term partners and share directly in the pipeline's financial success for decades.
Indigenous economic participation in natural resource development is critical for success. Without the opportunities provided by LNG export facilities, many First Nations would have fewer pathways to economic sovereignty, which would adversely impact not only their future but also ours.
LNG projects are significant job creators, particularly in rural and remote northern regions where such opportunities are scarce. For instance, the LNG Canada facility in Kitimat has already employed over 30,000 Canadians during its construction [3]. These roles offer high wages and skills training, providing rare chances for people to build long-term careers close to home. LNG Canada has also injected billions into the economy, awarding over $4.7 billion in contracts to B.C. companies, including $3.8 billion to Indigenous-owned and local area businesses [3]. As Premier Eby noted at its launch, the project is expected to increase our national GDP by 0.4%.
But the fiscal benefits don’t stop there. During the 2013-2014 fiscal year, B.C.’s government saw $445 million in natural gas royalties [8]. In the province’s latest annual budget and fiscal plan, it expects those royalties to reach $1.43 billion by 2027, primarily due to increased natural gas volumes associated with LNG production [8]. In turn, these revenues support Canadian communities at large.
Foregoing the royalties and tax revenues from LNG development would weaken Canada by diminishing our government's ability to fund the essential social services that support our collective standard of living and quality of life.
A thriving LNG sector on Canada’s west coast could generate more than $150 billion in revenues for provincial and federal governments over decades, funds that can help pay for our schools, hospitals, roads, and the workers who build and staff them. This is no small number. For example, in 2024/25, B.C. is planning to spend $9.6 billion K-12 education [9]. Hence, $150 billion in revenues from LNG could account for more than 15 years of B.C.'s spending on public schooling.
Even a single project, such as Ksi Lisims LNG, is projected to add nearly $900 million in annual taxes to government coffers [4], funds that Canadians need to support our social programs and overall well-being.
Ultimately, LNG development generates crucial revenue for both the private and public sectors, thereby strengthening the national economy and enhancing our quality of life.
Canada has historically sold its natural gas at a discount to the U.S. due to a lack of market diversification, costing our economy $9 billion in potential annual revenues. Developing an LNG export industry connects Canada’s vast resources to global markets apart from the U.S., where they can command a much higher price.
The Alberta benchmark, for example, averaged $1.36 mmBTU last year. It is expected to rise to $4 per mmBTU by 2032, driven mainly by market diversification to international buyers [5].
With the world’s ninth-largest natural gas reserves, exporting LNG is a strategic approach to maximizing the value of a key Canadian resource, benefiting the entire country through increased jobs, business opportunities, and public revenues.
Following years of capital flight to more competitive jurisdictions, the LNG sector is set to create tens of billions of dollars of investment in our communities. Canada’s seven LNG projects currently under development represent a combined direct capital injection of over $109 billion into the economy.
Between 2016 and 2022, for example, Canada saw more than $225 billion in capital investment leave the country [6]. Meanwhile, between 2015 and 2023, Canada saw nearly $670 billion in cancelled or suspended energy, forestry, and mining projects. These figures represent lost jobs and unrealized economic growth for all Canadians.
To build a stronger and more independent nation, Canada must attract new capital for major infrastructure projects that create high-value jobs, business opportunities, and substantial public revenues.
Canada's LNG sector is deeply intertwined with Indigenous economic empowerment and reconciliation. First Nations have moved beyond consultation to become true partners, and even owners. For example, the Haisla Nation is the majority owner of the Cedar LNG project – the largest Indigenous-owned infrastructure project in Canada, while the Nisga’a Nation co-owns Ksi Lisims LNG. This ownership model provides remote First Nations with self-sourced revenue streams to invest in housing, education, and cultural preservation.
Cedar LNG, for example, is expected to create 300 full-time construction and trades jobs, and 100 highly skilled jobs [10]. Additionally, the project is estimated to contribute $275 million to Canada’s gross domestic product (GDP) during construction and $85 million in annual GDP during operations [10]. With a little over 10,000 people living in the immediate area [11], these numbers represent life-changing job and business opportunities that will help communities thrive.
A Canada where Indigenous communities are empowered partners in prosperity is a stronger and more unified nation for all.
With global LNG demand expected to rise 60% through 2040, a greater supply of Canadian LNG on global markets benefits both Canada and the world. Since 2022, numerous democratic allies in Europe and Asia have asked for or supported Canadian LNG to reduce their reliance on unstable regimes.
By exporting to these nations, Canada can provide a reliable and ethically sourced energy supply. Shipping times to Asia, for example, are just 8 to 10 days from the West Coast, while U.S. Gulf shipments take at least twice as long [7]. This strengthens our geopolitical standing and positions Canada as a preferred energy partner among our trade partners and allies.
Fulfilling the role of a stable, democratic energy supplier enhances Canada’s global influence, reinforces our reputation as a trusted partner, and creates lasting trade opportunities that benefit all Canadians.
From generating national wealth and creating jobs to empowering Indigenous partners and supporting our allies, the evidence is clear: LNG development makes Canada stronger. Embracing this opportunity is a strategic choice that reinforces our country's economic foundations and enhances our global influence.
By moving forward with LNG development, we are choosing to build a stronger, more self-reliant, and unified Canada. Join us today to learn more!
Natural resources are key to our economic future — We must remove the regulatory roadblocks holding us back. pic.twitter.com/THMMjrxWK8
— Canada Action (@CanadaAction) July 4, 2025
SOURCES:
1 - https://www.conferenceboard.ca/product/a-rising-tide-the-economic-impact-of-b-c-s-liquified-natural-gas-industry/
2 - https://www.coastalgaslink.com/
3 - https://www.lngcanada.ca/news/launching-an-entirely-new-canadian-industry/
4 - https://troymedia.com/business/ksi-lisims-lng-project-granted-license/
5 - https://globalnews.ca/news/11278563/alberta-natural-gas-prices-lng-report/
6 - https://financialpost.com/opinion/canada-lost-225-billion-foreign-investment-since-2016
7 - https://www.biv.com/news/transportation/lng-projects-could-double-bc-marine-vessel-traffic-by-2040-says-report-10749746
8 - https://www.biv.com/news/commentary/opinion-launching-canadas-lng-industry-will-bring-billions-to-bcs-economy-8398967
9 - https://www.fraserinstitute.org/studies/k-12-education-reform-in-british-columbia
10 - https://www.canada.ca/en/innovation-science-economic-development/news/2025/03/government-of-canada-announces-support-for-cedar-lng.html
11 - https://citypopulation.de/en/canada/britishcolumbia/admin/5949__kitimat_stikine/