Canada’s LNG industry is at a fork in the road. The US is pushing a $44 billion USD Alaska LNG project and President Donald Trump is flexing his economic muscle, putting Canada in danger of losing its edge in the global market.
Japan, a top LNG importer, is being courted by Trump to buy Alaskan natural gas and Canada’s chance to get into Asian markets is at risk. To stay competitive, the federal and provincial governments must get behind the LNG sector—now.
The Alaska LNG project is a game changer. It will pipe gas 800 miles from Alaska’s north to its south coast and target exports to Japan and others by 2030. Trump is using tariffs to pressure these allies to commit, despite Japan’s hesitation over costs and harsh conditions.
Meanwhile, Canada’s LNG projects—LNG Canada in Kitimat, Cedar LNG and Ksi Lisims—are either in production or development. B.C. currently has the shorter shipping routes to Asia compared to the US, giving it an advantage, but that won’t last if Alaska catches up.
Trump’s return to power makes it even more urgent. His “America First” agenda puts U.S. energy exports first and he’s already threatening tariffs on Canadian oil and gas and ther sectors. This protectionism means Canada can’t rely solely on the U.S. market anymore. Diversifying to Asia is critical but that requires a robust LNG industry—and government support to make it happen.
So far Canada’s governments have been inconsistent. The federal Liberals has added layers of red tape like the Impact Assessment Act which slows down project approvals. In 2018 they banned oil tankers on B.C.’s north coast, which killed the Northern Gateway pipeline. The B.C. government under has approved some LNG projects—Cedar LNG—but their heavy regulations remain in-place and environmental targets like Clean BC’s hydro-powered mandates create uncertainty for investment.
Alberta’s deal with Japan to advance mutual energy goals shows what can be done with leadership, but Ottawa is lagging behind.This won’t cut it against Alaska’s momentum. Trump’s administration is all in, cutting regulations and pushing allies to buy U.S. gas. Canada’s LNG industry has delays from environmental reviews, consultations and green NGO opposition. Projects like the Prince Rupert Gas Transmission (PRGT) pipeline, backed by the Nisga’a Nation, are stalled by disputes with activists. Without government action, investors will look elsewhere.
What does full support look like? First, the federal government must streamline approvals. The Impact Assessment Act needs to balance environmental concerns with economic growth, not strangle projects in red tape.
Second, both levels of government must fund infrastructure—pipelines and terminals—to make LNG exports viable.
Third, they must negotiate long term trade deals with Japan and other Asian buyers before Alaska locks them in. Finally, Ottawa and B.C. must work with Indigenous partners like the Haisla and Nisga’a to resolve disputes and share benefits, and turn opposition into collaboration.
It’s high stakes. These LNG projects will bring jobs, revenue and energy security for Canada and its allies. But if Alaska gets to Japan’s market before Canada, that opportunity will evaporate. Trump’s tariffs are already threatening thousands of jobs across multiple industries and sectors in every province.
LNG growth can offset those losses—if governments act. Natural resource project are proven job machines that have huge positive impacts on economic growth. This is vital in our economic climate, and there are few countries better suited to benefit from resources than Canada.
Canada has the gas—1,368 trillion cubic feet—and the proximity to Asia. What it lacks is political will. The federal and provincial governments must unite, cut the red tape and back LNG fully. Otherwise Trump and Alaska will get the prize.
