Canada’s emergence as a major LNG exporter is turning out to be perfectly timed with Ottawa’s push to strengthen its ties with the Association of Southeast Asian Nations (ASEAN).
During Canada Day festivities on July 1, the first shipment from LNG Canada’s plant in Kitimat departed for the Asia-Pacific. The facility cost CAD $40 billion and is backed by Shell, Petronas, Mitsubishi Corporation, PetroChina, and Korea Gas Corp (KOGAS).
Chris Cooper, the CEO of LNG Canada, announced that the start of operations could not have come at a better time, as trade tensions continue to strain relations with the United States. Canada has traditionally relied heavily on the U.S. for exporting oil and gas.
Outreach to ASEAN is part of a deliberate effort to expand Canada’s trade relationships, and Ottawa has been actively working to finalize an ASEAN-Canada Free Trade Agreement (ACAFTA). Foreign Affairs Minister Anita Anand has embarked on a tour of Asian partners like Japan and Malaysia, and has stated that ASEAN is key to growing commercial ties beyond the G7.
One of the ASEAN members that has shown interest in Canadian LNG is the Philippines. Their former Foreign Affairs Secretary Enrique Manalo announced his government’s openness to investment and collaboration on LNG projects during a previous visit to Vancouver.
Manalo indicated that the Philippines aims to become a major LNG import hub in Southeast Asia. Although Taiwan is not an ASEAN member state, its government representatives have also expressed interest in investment and securing Canadian LNG supplies. Petronas, one of the backers of LNG Canada, is based in Malaysia, further reinforcing the potential of Canadian LNG in the wider region.
The Financial Times has reported on Canada’s potential to become a significant exporter of fossil fuels due to these developments. Shipping LNG from Canada to Asia takes about half the time required for American natural gas produced on the Gulf Coast.
However, challenges remain, such as the relatively limited infrastructure in British Columbia and stricter Canadian environmental regulations. Canada does have significant advantages, including enough natural gas reserves to last three centuries at current extraction rates, but only one major LNG project has been completed so far.
Smaller projects such as Cedar LNG and Woodfibre LNG are expected to begin operations within the next few years.
The LNG Canada facility has been described by Business Examiner as a “global benchmark for responsible LNG development.” It uses advanced modular construction methods emphasizing efficiency and environmental sustainability, including leveraging British Columbia’s hydroelectric power sources to reduce emissions.
In terms of economic impact, LNG Canada is expected to create almost 300 long-term jobs and add $575 million annually to British Columbia’s economy. Kitimat Mayor Phil Germouth praised the project’s effective cooperation with local communities and First Nations, stating that it sets a “gold standard” for infrastructure development.
Meanwhile, The Malaysian Reserve reported that ASEAN and Canada have agreed to enhance cooperation on clean energy and advanced technologies as part of the upcoming ASEAN-Canada Plan of Action (2026-2030). In an evolving global economy, these partnerships are critical for improving economic resilience, energy security, and sustainable development.
Canada’s timing in beginning LNG exports aligns perfectly with its broader diplomatic and economic objectives in Southeast Asia. Canada’s ambition to become an “energy superpower” aligns closely with its goal of strengthening economic ties and supporting ASEAN’s regional development, particularly as member states like the Philippines have expressed explicit interest in this area.
Canada’s entry into the LNG export market represents not only a significant economic milestone but also a strategic geopolitical move. It demonstrates Canada’s commitment to reshaping its trade policy and expanding its energy markets in alignment with growing diplomatic ties in the 2020s.
