QUESTION PERIOD — Natural Resources
Export of Liquefied Natural Gas
September 24, 2025
Thank you very much for your openness. My question is to Senator Moreau. Earlier this month, China and Russia announced an agreement on a new pipeline that will ship massive amounts of liquefied natural gas, or LNG, from Russia’s Arctic to Shanghai, a deal that many experts are saying will cause major shifts in international LNG trade. With Europe moving away from its dependence on fossil fuels and with China’s LNG imports having plunged by more than 20% according to the International Energy Agency, there is mounting evidence that the world is heading toward a massive excess supply of LNG, making any new Canadian LNG project a risky investment. Given the physical transition and market risk associated with new LNG infrastructure, can the government justify LNG projects on its major projects list?
As you’re well aware, Senator Galvez, Canadians voted to make Canada an energy superpower. This was the platform of the Prime Minister during the election campaign. We live in a democracy, and Canadians deserve to attain what they voted for.
As far as liquefied natural gas, or LNG, is concerned, Canada seeks to diversify trade relationships. The government has an opportunity to play a strategic role in the world’s evolving energy mix, and that’s the reason why LNG presents a significant opportunity for Canada to export a low-risk and low-carbon product to strengthen energy security with that ally.
Thank you for that answer.
New research by University College London has revealed that $48 billion U.S. invested in LNG carriers could be written off due to significant oversupply. Add to that a volatile LNG market and aggressive U.S. trade tactics, Canada’s LNG export market faces very high risk.
What is Canada’s current exposure to LNG projects? How will it manage the high-cost risk of stranded assets?
I said yesterday that we live in no ordinary times, and everybody agreed with that.
As part of those changes, we know that as long as Russia continues its war in Ukraine, countries like Germany need a safe, trusted and reliable supplier of energy, and this is where Canada could stand beside its ally and make sure that — I would say — safer sources of energy are made available to our ally.
