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Canadian Energy Centre

Opportunity knocks for Canada to become key LNG supplier as U.S. pauses projects

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Rendering courtesy Cedar LNG

From the Canadian Energy Centre

By Cody Ciona

“Everyone wins if Canada can get into the game.”

Canada’s emerging liquefied natural gas (LNG) industry has an opportunity to become a key supplier for energy-hungry countries in Asia and beyond following the U.S. pause on new or pending LNG export approvals, industry watchers say. 

With much of the world looking for alternatives to Russian natural gas following its invasion of Ukraine in 2022, the U.S. emerged as the number one global exporter of LNG. According to the International Energy Agency, the U.S. accounted for 80 per cent of additional supply in 2023. 

But with the U.S. putting its LNG industry on pause, the timing could be good for Canada. 

The recent completion of the Coastal Gaslink pipeline along with progress on Canadas first LNG export projects are bringing Canada closer to becoming a key global supplier. 

An opportunity to showcase clean LNG 

As the LNG Canada terminal moves into its final stages of construction, Kitimat, B.C. will become the gateway for exports from Canada. 

For First Nations LNG Alliance CEO Karen Ogen, this means Canada, which has so far missed the global LNG boom, will have another chance at becoming a player.  

I think this is an opportunity for us to showcase our clean LNG and I think we can do it through the various projects [underway].” Ogen said. 

Those projects, which include LNG Canada and Woodfibre LNG that are under construction, along with the proposed Cedar LNG and Ksi Lisims LNG terminals, will operate with an emissions intensity less than half that of the global average.  

Cedar LNG, headed by the Haisla First Nation, will operate at less than one-third of the global average. 

Ogen said these projects will create significant prosperity, not just for Canada and B.C. but for Indigenous peoples as well. 

It’ll help boost our Canadian economy, it’ll help B.C.s economy, and most specifically it will help the Indigenous people and our economy. If were the most disadvantaged population living in poverty, then this should help our people get out of poverty.” she said. 

Everyone wins if Canada can get into the game. 

Reduced LNG supply could increase reliance on coal 

Racim Gribaa, founder and president of Global LNG Consulting Inc., said a potential decrease in LNG exports to international markets, particularly in Asia, may heighten dependence on coal, thereby escalating global emissions. 

If [importers] can’t get U.S. LNG, they would be left with very few viable alternatives including coal. And if they burn coal, that’s twice as much emissions. Coal is cheaper and reliablebut emits twice as much carbon. Countries in Asia such as China, with over 1,140 operational coal plants, are building new coal plants every week both in Asia and abroad,” Gribaa said. 

Canada has a significant geographical advantage to supply LNG to Asia that can reduce associated transportation emissions by up to 60 per cent, he said.  

Export terminals in B.C. are about half the distance to Asia compared to terminals on the U.S. Gulf Coast. 

The distance between Canada and the key market is a huge advantage, where we are the same distance to Asia as Australia,” Gribaa said. 

Monetizing natural gas in Canada through LNG exports not only will help reduce global emissions but it also will enhance health and economic well being of Canadians future generations.” 

Establishing Canada’s LNG credibility 

The starting point will be LNG Canada in 2025, which will allow Canada to export LNG on international scale, Gribaa said. It will help establish Canadas credibility as a supplier, just as the U.S. pauses new development.  

Once that credibility is established, Canadian LNG could become a bigger player on the global scale. 

Canada’s abundant natural gas reserves empower the nation to produce and export decades of dependable, cost-effective, and environmentally-friendly LNG to global markets, leveraging direct marine routes unaffected by constraints like the Panama or Suez Canals, the Strait of Hormuz, or having to navigate around the Cape of Good Hope,” Gribaa said 

“Canada stands poised to secure market share for years to come, irrespective of whether the U.S. temporarily halts or reconsiders its involvement. 

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Alberta

Nobel Prize nods to Alberta innovation in carbon capture

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From the Canadian Energy Centre

By Grady Semmens

‘We are excited to bring this made-in-Canada innovation to the world’

To the naked eye, it looks about as exciting as baking soda or table salt.

But to the scientists in the University of Calgary chemistry lab who have spent more than a decade working on it, this white powder is nothing short of amazing.

That’s because the material they invented is garnering global attention as a new solution to help address climate change.

Known as Calgary Framework-20 (CALF-20 for short), it has “an exceptional capacity to absorb carbon dioxide” and was recognized in connection with the 2025 Nobel Prize in Chemistry.

A jar of CALF-20, a metal-organic framework (MOF) used in carbon capture. Photo courtesy UCalgary

“It’s basically a molecular sponge that can adsorb CO2 very efficiently,” said Dr. George Shimizu, a UCalgary chemistry professor who leads the research group that first developed CALF-20 in 2013.

The team has been refining its effectiveness ever since.

“CALF-20 is a very exciting compound to work on because it has been a great example of translating basic science into something that works to solve a problem in the real world,” Shimizu said.

Advancing CCS

Carbon capture and storage (CCS) is not a new science in Alberta. Since 2015, operating projects in the province have removed 15 million tonnes of CO2 that would have otherwise been emitted to the atmosphere.

Alberta has nearly 60 proposed facilities for new CCS networks including the Pathways oil sands project, according to the Regina-based International CCS Knowledge Centre.

This year’s Nobel Prize in Chemistry went to three of Shimizu’s colleagues in Japan, Australia and the United States, for developing the earliest versions of materials like CALF-20 between 1989 and 2003.

Custom-built molecules

CALF-20 is in a class called metal-organic frameworks (MOFs) — custom-built molecules that are particularly good at capturing and storing specific substances.

MOFs are leading to new technologies for harvesting water from air in the desert, storing toxic gases, and capturing CO2 from industrial exhaust or directly from the atmosphere.

CALF-20 is one of the few MOF compounds that has advanced to commercial use.

“There has been so much discussion about all the possible uses of MOFs, but there has been a lot of hype versus reality, and CALF-20 is the first to be proven stable and effective enough to be used at an industrial scale,” Shimizu said.

It has been licensed to companies capturing carbon across a range of industries, with the raw material now being produced by the tonne by chemical giant BASF.

CO2 pipeline at the Quest CCS project near Edmonton, Alta. Photo courtesy Shell Canada

Carbon capture filter gigafactory

Svante Inc. has demonstrated its CALF-20-based carbon capture system at a cement plant in British Columbia.

The company recently opened a “gigafactory” in Burnaby equipped to manufacture enough carbon capture and removal filters for up to 10 million tonnes of CO2 annually, equivalent to the emissions of more than 2.3 million cars.

The filters are designed to trap CO2 directly from industrial emissions and the atmosphere, the company says.

Svante chief operating officer Richard Laliberté called the Nobel committee’s recognition “a profound validation” for the entire field of carbon capture and removal.

CALF-20 expansion

Meanwhile, one of Shimizu’s former PhD students helped launch a spinoff company, Existent Sorbents, to further expand the applications of CALF-20.

Existent is working with oil sands producers, a major steel factory and a U.S.-based firm capturing emissions from other point sources, said CEO Adrien Côté.

“The first users of CALF-20 are leaders who took the risk of introducing new technology to industries that are shrewd about their top and bottom lines,” Côté said.

“It has been a long journey, but we are at the point where CALF-20 has proven to be resilient and able to survive in harsh real-world conditions, and we are excited to bring this made-in-Canada innovation to the world.”

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Alberta

Busting five myths about the Alberta oil sands

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Construction of an oil sands SAGD production well pad in northern Alberta. Photo supplied to the Canadian Energy Centre

From the Canadian Energy Centre

By Deborah Jaremko

The facts about one of Canada’s biggest industries

Alberta’s oil sands sector is one of Canada’s most important industries — and also one of its most misunderstood.

Here are five common myths, and the facts behind them.

Myth: Oil sands emissions are unchecked

Steam generators at a SAGD oil sands production site in northern Alberta. Photo courtesy Cenovus Energy

Reality: Oil sands emissions are strictly regulated and monitored. Producers are making improvements through innovation and efficiency.

The sector’s average emissions per barrel – already on par with the average oil consumed in the United States, according to S&P Global – continue to go down.

The province reports that oil sands emissions per barrel declined by 26 per cent per barrel from 2012 to 2023. At the same time, production increased by 96 per cent.

Analysts with S&P Global call this a “structural change” for the industry where production growth is beginning to rise faster than emissions growth.

The firm continues to anticipate a decrease in total oil sands emissions within the next few years.

The Pathways Alliance — companies representing about 95 per cent of oil sands activity — aims to significantly cut emissions from production through a major carbon capture and storage (CCS) project and other innovations.

Myth: There is no demand for oil sands production

Expanded export capacity at the Trans Mountain Westridge Terminal. Photo courtesy Trans Mountain Corporation

Reality: Demand for Canadian oil – which primarily comes from the oil sands – is strong and rising.

Today, America imports more than 80 per cent more oil from Canada than it did in 2010, according to the U.S. Energy Information Administration (EIA).

New global customers also now have access to Canadian oil thanks to the opening of the Trans Mountain pipeline expansion in 2024.

Exports to countries outside the U.S. increased by 180 per cent since the project went into service, reaching a record 525,000 barrels per day in July 2025, according to the Canada Energy Regulator.

The world’s appetite for oil keeps growing — and it’s not stopping anytime soon.

According to the latest EIA projections, the world will consume about 120 million barrels per day of oil and petroleum liquids in 2050, up from about 104 million barrels per day today.

Myth: Oil sands projects cost too much

Heavy haulers at an oil sands mining operation in northern Alberta. Photo courtesy Suncor Energy

Reality: Operating oil sands projects deliver some of the lowest-cost oil in North America, according to Enverus Intelligence Research.

Unlike U.S. shale plays, oil sands production is a long-life, low-decline “manufacturing” process without the treadmill of ongoing investment in new drilling, according to BMO Capital Markets.

Vast oil sands reserves support mining projects with no drilling, and the standard SAGD drilling method involves about 60 per cent fewer wells than the average shale play, BMO says.

After initial investment, Enverus says oil sands projects typically break even at less than US$50 per barrel WTI.

Myth: Indigenous communities don’t support the oil sands 

Chief Greg Desjarlais of Frog Lake First Nation signs an agreement in September 2022 whereby 23 First Nations and Métis communities in Alberta acquired an 11.57 per cent ownership interest in seven Enbridge-operated oil sands pipelines for approximately $1 billion. Photo courtesy Enbridge

Reality: Indigenous communities play an important role in the oil sands sector through community agreements, business contracts and, increasingly, project equity ownership.

Oil sands producers spent an average of $1.8 billion per year with 180 Indigenous-affiliated vendors between 2021 and 2023, according to the Canadian Association of Petroleum Producers.

Indigenous communities are now owners of key projects that support the oil sands, including Suncor Energy’s East Tank Farm (49 per cent owned by two communities); the Northern Courier pipeline system (14 per cent owned by eight communities); and the Athabasca Trunkline, seven operating Enbridge oil sands pipelines (~12 per cent owned by 23 communities).

These partnerships strengthen Indigenous communities with long-term revenue, helping build economic reconciliation.

Myth: Oil sands development only benefits people in Alberta 

The Toronto Stock Exchange (TSX) on Bay St. Getty Images photo

Reality: Oil sands development benefits Canadians across the country through reliable energy supply, jobs, taxes and government revenues that help pay for services like roads, schools and hospitals.

The sector has contributed approximately $1 trillion to the Canadian economy over the past 25 years, according to analysis by the Macdonald-Laurier Institute (MLI).

That reflects total direct spending — including capital investment, operating costs, taxes and royalties — not profits or dividends for shareholders.

More than 2,300 companies outside of Alberta have had direct business with the oilsands, including over 1,300 in Ontario and almost 600 in Quebec, MLI said.

Energy products are by far Canada’s largest export, representing $196 billion, or about one-quarter of Canada’s total trade in 2024, according to Statistics Canada.

Led by the oil sands, Canada’s energy sector directly or indirectly employs more than 445,000 people across the country, according to Natural Resources Canada.

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