Asia’s search for long-term, lower-carbon LNG supply puts Canada in focus but competition is intensifying

Asia’s long-term energy security will increasingly depend on diversified, reliable and lower-carbon LNG supply. As buyers look beyond traditional sources, Canada is emerging as a compelling long-term supplier due to its proximity to the Asian market, as well as its lower carbon intensity.

Canada’s LNG sector is entering a new phase of growth. LNG Canada reached a final investment decision on its Phase 2 expansion in September 2026, doubling the facility’s capacity to 28 mmtpa and reinforcing Canada’s potential as a significant long-term supplier to Asian markets. Together with Woodfibre and Cedar LNG which are currently under construction, Canada looks to export 33 mmtpa of LNG by end of this decade.

Even with the addition of projects such as Ksi Lisims LNG, Canada remains well below Prime Minister Mark Carney’s long-term ambition of achieving 100 mtpa of LNG export capacity under his “energy superpower” agenda. Meanwhile, global competition for LNG investment is accelerating as a growing number of projects compete for scarce capital and seek to reach FID. Consequently, Canada’s opportunity to secure a larger position in the next phase of global LNG supply growth may be limited in both time and scale.

In this context, a whitepaper, prepared in collaboration with Energy Asia by PETRONAS and Wood Mackenzie, assesses Canada’s prospects for capturing a greater share of Asia’s expanding LNG demand. It also highlights the evolving needs of Asian buyers and investors, offering insights into the conditions required for LNG-exporting nations to attract investment and successfully advance new projects.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →