Canada must capitalize on its natural gas reserves

Canada is poised to become a major player in the liquefied natural gas (LNG) market, as it now ranks among the top ten countries with natural gas reserves. However, the country is falling behind the United States, which has significantly expanded its LNG exports over the past decade. A recent report by the Atlantic Council highlights that the U.S. has become the world’s largest LNG supplier, contributing $400 billion to its economy since it started exporting. While U.S. LNG exports now dominate the global market, Canada has struggled to make its mark despite having vast reserves. Alberta recently announced a sixfold increase in its natural gas reserves, bringing it to 130 trillion cubic feet. Nevertheless, challenges remain. Canada’s natural gas often trades at lower prices compared to U.S. gas. To develop LNG facilities, long-term supply contracts are essential, but much of the current market demand is already locked in. Canada has seven LNG export projects underway, all located in British Columbia. The total capacity of these projects is estimated at 50 million tonnes per annum, with significant investments needed. The first Canadian LNG export facility is expected to ship its first cargo to Asia later this year. Despite these developments, Canada’s LNG exports are minimal compared to the U.S., which exported 88 million tonnes in 2024 alone. The country needs to move quickly to secure its share of the global market. Experts suggest that the government should fast-track projects, streamline regulations, and invest in necessary infrastructure to ensure that Canada does not miss this critical opportunity.