Canada sees LNG export opportunity amid Middle East tensions, energy minister says

Canada could play a larger role in global oil and liquefied natural gas supply as conflict in the Middle East disrupts energy markets, federal Energy Minister Tim Hodgson said.

According to Hodgson, several countries have contacted Canada about increasing oil and LNG shipments to offset supply shortfalls. He did not identify which countries had made recent approaches.

The minister acknowledged that production of LNG or oil cannot be significantly increased within days, but said the situation underscores the need to further develop Canada’s natural resources. “It is not possible to ramp up production in just a few days,” he said, while arguing that long-term capacity expansion would position Canada as a stable supplier.

Earlier this month, Hodgson told a parliamentary committee that countries including Japan, South Korea, China and India are seeking access to Canadian natural gas. He said that, based on current projections, Canada could become one of the world’s largest LNG suppliers, with annual export capacity reaching 100 million tonnes if projects proceed as planned.

Hodgson also stated that Canada would not use its energy resources to exert pressure on other countries, but would instead aim to serve as a reliable partner in global supply chains.