Canada's LNG industry is entering a new phase of growth. The LNG Canada project made its final investment decision (FID) in September 2026 to expand its second phase, doubling the capacity of this facility to 28 million tons per year (mmtpa). This move enhances Canada's potential as a key long-term supplier for Asian markets. Additionally, the Woodfibre and Cedar LNG projects currently under construction will enable Canada to achieve LNG exports of 33 million tons per year by the end of this decade.
Challenges in the Global LNG Market
Despite the addition of projects like Ksi Lisims LNG, Canada still falls significantly short compared to the long-term plan of Mark Carney, the Prime Minister of Canada, which aims for an export capacity of 100 million tons per year of LNG under the "Energy Superpower" initiative. Meanwhile, global competition for investment in LNG is intensifying, as an increasing number of projects compete for scarce capital and to reach a final investment decision (FID). As a result, Canada's opportunity to secure a larger position in the next phase of global LNG supply growth may be limited.
Asian Market Needs and Canada's Solutions
In this context, a white paper prepared in collaboration with Energy Asia by PETRONAS and Wood Mackenzie assesses Canada's prospects for capturing a larger share of the growing LNG demand in Asia. The report also emphasizes the evolving needs of Asian buyers and investors and provides insights into the conditions necessary to attract investment and advance new projects.
Joshua Ng, Vice President of the Asia-Pacific Division at Wood Mackenzie, stated, "For Asian buyers, Canada offers something that is increasingly rare in the global LNG markets: a combination of resource scale, access to the Pacific basin, and short transportation routes." He added, "This is an attractive proposition. However, buyers also evaluate cost, timing, and execution risk compared to other options that are currently more advanced.
According to Wood Mackenzie, Asian LNG demand is expected to double from about 260 million tons per year today to around 500 million tons per year by 2060. Critically, a significant portion of this future demand remains uncontracted, creating opportunities for new LNG suppliers to secure long-term market access.
South and Southeast Asia are expected to account for a large portion of future LNG demand growth and are likely to be key destinations for new long-term supply agreements. However, many of these markets are price-sensitive and have limited capacity to absorb high energy costs, despite the important role of LNG in supporting economic growth and energy security.
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