Photo: Canada's first LNG export facility is now operational in British Columbia
Highlights
Canada enters the global liquified natural gas (LNG) market: First LNG cargo shipped June 30, 2025 from the new $40B LNG Canada facility in Kitimat BC, positioning Canada as a major supplier to Asia and beyond.
Strong global demand for LNG: Driven by industrialization in Asia and Africa, electrification in developed economies, and Europe’s push to replace Russian pipeline gas.
Geographic advantage: Canada’s west coast is closer to Asian markets than U.S. Gulf Coast exporters, avoiding Panama Canal constraints; future Arctic gateway via Port of Churchill could open direct routes to Europe.
Low carbon, low methane edge: Strict emissions policies, carbon pricing, and cold-climate liquefaction give Canadian LNG some of the world’s lowest carbon intensity, appealing to climate-conscious buyers.
Shifting global standards: Europe’s Methane Directive (2023) and expected Asian alignment mean buyers will increasingly demand certified low-methane LNG, where Canada is well positioned versus U.S. competitors.
Industry consolidation: Large-scale operators in Western Canada (Tourmaline, Ovintiv, Whitecap, ARC, etc.) are building capacity to reliably supply LNG, invest in methane monitoring, and secure long-term global contracts.
Role of advanced methane monitoring: Sustaining Canada’s edge will hinge on proving its environmental credentials. Integrating advanced monitoring — especially satellite analytics — will be essential to maintaining credibility with buyers and securing premium long-term contracts.