By Joshua Santos
Published: November 12, 2025
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Oil and gas experts are at odds on how Canada should diversify its energy resources.
Prime Minister Mark Carney’s government is developing a liquefied natural gas (LNG) industry to capitalize on Canada’s natural gas reserves, meet global energy demand, and unlock economic benefits like job creation and revenues. Competition however is expected from the United States and Qatar.
“Many importing countries are shifting away from expensive and imported gas and towards cheaper, more reliable renewables,” said Steven Haig, policy advisor for the International Institute for Sustainable Development (IISD).
“This means that when it comes to the economic benefits of LNG, Canada is late to the party, and that party is almost over.”
LNG is natural gas in a liquid state. When chilled to -160 C, it becomes clear, colourless and odourless. When liquefied, it shrinks more than 600 times in volume, according to Natural Resources Canada.
Oil and gas experts are at odds on how Canada should diversify its energy resources.
Prime Minister Mark Carney’s government is developing a liquefied natural gas (LNG) industry to capitalize on Canada’s natural gas reserves, meet global energy demand, and unlock economic benefits like job creation and revenues. Competition however is expected from the United States and Qatar.
“Many importing countries are shifting away from expensive and imported gas and towards cheaper, more reliable renewables,” said Steven Haig, policy advisor for the International Institute for Sustainable Development (IISD).
“This means that when it comes to the economic benefits of LNG, Canada is late to the party, and that party is almost over.”
LNG is natural gas in a liquid state. When chilled to -160 C, it becomes clear, colourless and odourless. When liquefied, it shrinks more than 600 times in volume, according to Natural Resources Canada.
“Canadian LNG projects will depend on high prices and high demand for decades to come. With a global supply already around the corner, the market favours lower cost producers like Qatar, which could leave Canadian projects at risk of becoming stranded if prices fall below profitable levels,” said Haig.
Canada is a long-time exporter of large quantities of natural gas and for many years was second only to Russia. Today, Canada is fourth in global natural gas exports and fifth in global production.
Global demand for LNG meanwhile is expected to increase particularly in Asia and Europe, which are seeking to diversify their energy supply and reduce reliance on coal.
Richard Masson, executive fellow for the University of Calgary School of Public Policy and former CEO of Alberta Petroleum Marketing Commission said Canada is well positioned to compete in the LNG market.
“When you look at Canada, we have a gigantic natural gas resource,” said Masson adding that Canada has been able to sell at $3 MMBtu for 1,000 cubic feet of gas when the world sold it at $12 MMBtu.
“There is clearly enough value for LNG facilities on their B.C. coast to turn that cheap Canadian natural gas into a product that the world wants,” said Masson.
A massive project is under review at the Major Projects Office. According to the government, LNG Canada Phase 2 in Kitimat B.C. is expected to attract $33 billion in private-sector capital to Canada and contribute to GDP growth.
Countries around the world however have moved to clean and renewable energy. Solar and wind power adoption have accelerated, electric vehicle sales have surged globally, and energy efficiency overall has improved, according to the International Energy Agency (IEA).
Global investment in clean energy reached US$2.2 trillion last year, surpassing the US$1 trillion invested in fossil fuels, according to IEA data.
“Canada has vast potential for renewable energy projects, and these are projects that can bring growth, jobs and lower bills to Canadians all across the country,” said Haig.
“Now whether that’s offshore wind in Atlantic Canada or large scale solar in Alberta, there are huge opportunities for renewables nationwide, and there’s certainly space for the government to increase support for these projects going forward.”
Fossil fuels such as oil, gas and coal account for about 83 per cent of global primary energy consumption, according to the Energy Institute.Stay on top of your portfolio with real-time data, historical charts and the latest news on oil
Masson said global demand for energy is continuing to grow as renewables in hydro, wind and solar continue to expand. He said renewables however are not expanding fast enough to meet the needs of the world.
“It’s very difficult to change a global energy system that we have built over decades,” said Masson. “Building LNG facilities in Canada is one of the better ways to try and meet that energy demand, because we’re closer to the Asian market.”
Initiatives in the major projects office are fast tracked through the government as they are deemed to be of natural interest, potentially undermining environmental assessments and regulatory oversight.
Masson said Canada has high standards of producing natural gas.
“Methane emissions regulations are very strong on a global basis, for sure,” said Masson.
“LNG from Canada is some of the lowest emissions LNG in the world. Yes, it will create more greenhouse gas emissions on a global basis, but if it’s not done in Canada, it will be done in other places like Qatar or Australia or Russia. It’s better for the world, for Canadian LNG to get produced than some of those countries.”
BNN Bloomberg reached out to the Major Projects Office for comment, but received no response by press time.
Joshua Santos
Journalist, BNNBloomberg.ca
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