LNG Canada Expansion Set to Boost Non-US Natural Gas Exports

Canada's natural gas exports to non-U.S. markets are expected to increase significantly with the construction of LNG Canada's Phase 2 expansion.

The project, which was announced on September 29, 2026, will double the liquefied natural gas production capacity at the facility from 14 million tonnes per year to 28 million tonnes per year.

This represents an increase of $3.3 billion per year in non-U.S. liquefied natural gas export capacity, based on 2025 prices.

According to data from last year, LNG Canada Phase One marked the first time Canadian natural gas producers could export directly to non-U.S. markets, resulting in 15.0% of our natural gas exports heading to countries other than the United States.

With the expansion, it is expected that up to 41.2% of Canada's natural gas exports could be diverted to non-U.S. markets, based on data from 2025.

Gabriel Giguère, a senior policy analyst at the MEI, noted that this increase in export capacity will make Canada's economy more resilient and prosperous.