S&P Global Report Says Canada Could Become Top LNG Exporter
S&P Global reports Canada could become the world's third-largest LNG exporter by 2050, potentially generating 250,000 jobs and C$1 trillion in investment.
A report from S&P Global indicates that Canada has the potential to become the world's third-largest liquefied natural gas (LNG) exporter by 2050. Achieving the federal government's target of 100 million tonnes per annum would stimulate C$1 trillion in investment, create 250,000 annual jobs, and contribute C$888 billion to the national GDP.
Despite this potential, current projections suggest Canada is on pace to produce only 36 million tonnes by 2050. Meeting the federal goal would require tripling drilling activity in Alberta and British Columbia and a 2.5-fold increase in investment. S&P Global identifies significant regulatory hurdles, noting that pipeline permitting takes 27 months longer than in Texas and construction costs are 160 percent higher.
Beyond direct exports, the study highlights spillover benefits for the petrochemical and oilsands sectors. Increased drilling for LNG would boost the production of natural gas liquids (NGLs), which serve as essential diluents for transporting oilsands bitumen. Under an accelerated scenario, this could support 1.2 million barrels per day of oilsands supply by 2040.
Daniel Yergin, vice-chairman of S&P Global, noted that Canada's short shipping routes to Asia and lower greenhouse gas intensity make its resources attractive to global buyers. To capture 14% of the global market share, the report suggests the government implement streamlined permitting, risk-sharing, and stronger Indigenous partnerships.
