Canada is getting a second shot at becoming a major LNG player

A decade after a promised boom in the liquified natural gas (LNG) industry failed to materialize, Canada is now at the starting line, rekindling aspirations of becoming a major LNG player. The long-awaited LNG Canada project is operational, with six more projects in various stages of development. If all of these projects come to fruition, they would represent $109 billion in capital investment, according to Natural Resources Canada.

The resurgence of interest in the LNG industry comes at a time when there is a renewed political appetite to build major infrastructure, boost the Canadian economy, and diversify exports away from the United States. However, despite these positive developments, the U.S. still leads Canada by a wide margin as an LNG exporter. Some experts caution that Canada may have already missed the opportunity to become a major player in the global LNG market.

Ed Crooks, vice-chair of the Americas for global consultancy Wood Mackenzie, believes that while Canada may not become an LNG-exporting superpower, there is still room to significantly increase export capacity. The country currently has seven proposed LNG projects, most of which have Indigenous ownership or partnerships, marking a significant shift from the projects proposed a decade ago.

One of these proposed projects is the Ksi Lisims LNG facility in the Nisga’a community of Gingolx, located in British Columbia. The project, a joint effort by the Nisga’a Nation, Rockies LNG, and Western LNG, aims to export LNG to Asia. Eva Clayton, the elected president of the Nisga’a Nation, views the project as a source of prosperity for current and future generations.

However, challenges remain for Canada’s LNG industry, including policy uncertainty, regulatory hurdles, and environmental concerns. The U.S., as the world’s largest exporter of LNG, continues to expand its export capacity, posing stiff competition for Canada. Nevertheless, with significant natural gas reserves and a strategic location on the Northwest coast, Canada remains well-positioned to capitalize on the growing demand for natural gas in Asia.

While some express skepticism about Canada’s ability to become an energy superpower, others are more optimistic about the country’s potential in the LNG market. Heather Exner-Pirot, director of energy, natural resources, and environment at the Macdonald-Laurier Institute, believes that Canada will eventually join the ranks of the world’s biggest LNG exporters, despite the challenges ahead.

As Canada navigates the complex landscape of the global LNG market, stakeholders must carefully balance economic opportunities with environmental considerations and community concerns. With a narrow window of opportunity to capitalize on the current upswing in LNG demand, Canada must act swiftly to establish itself as a competitive player in the industry. Whether the country can seize this opportunity and become a major player in the global LNG market remains to be seen.