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It’s Time for Canadians to Challenge the American Domination of the LNG Space

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From EnergyNow.Ca

By Susan McArthur

Canada is now among the top 10 countries with natural gas reserves. It’s time to take advantage of that

Canadians are starting to understand the Americans ate our breakfast, lunch and dinner when it comes to selling liquefied natural gas (LNG) on the global market while simultaneously undermining our national security.

They are finally waking up to the importance of the urgent request by oil and gas CEOs to all federal party leaders calling for the removal of legislation and regulation impeding and capping the development of our resources.

The LNG story in the United States is one of unprecedented growth, according to a recent Atlantic Council report by Daniel Yergin and Madeline Jowdy. Ten years ago, the U.S. did not export a single tonne of LNG. Today, U.S. exports account for 25 per cent of the global market and have contributed US$400 billion to its gross domestic product (GDP) over the past decade.

The U.S. is now the world’s largest LNG supplier, edging out Qatar and Australia, and according to Yergin and Jowdy, its export market is on track to contribute US$1.3 trillion to U.S. GDP by 2040 and create an average of 500,000 jobs annually.

Last week, Alberta announced a sixfold increase in its proven natural gas reserves to 130 trillion cubic feet (tcf). The new figures push Canada into the top 10 countries with natural gas reserves.

Unfortunately, notwithstanding this vast resource, Canada didn’t even make it to the LNG party and the Americans have been laughing all the way to the bank at Canada’s expense. Our decade-long anti-pipeline and natural resource agenda has cost us dearly and Donald Trump’s trade tariffs are a stake to the heart.

As the world grapples with global warming, natural gas is the perfect transition fuel. It generates half the CO2 emissions of coal, provides needed grid backup for intermittent renewable wind and solar power, and it is relatively easy to commission.

Canada has extensive natural gas reserves, but these reserves are less valuable if we can’t get them to offshore markets where countries will pay a premium for energy generation. Canadian gas is abundant, but, given our smaller market, typically trades at a discount to U.S. gas and a massive discount to European and Asian markets.

The capital-intensive nature of LNG facilities requires long-term supply contracts. Generally, 20-year supply contracts with creditworthy counterparties are required to secure the financing required to build gas infrastructure and liquefaction plants.

For example, as part of a larger strategic deal, Houston-based LNG company NextDecade Corp. signed a 20-year offtake agreement to supply 5.4 million tonnes per annum (mtpa) to French multinational TotalEnergies SE.

As the market grows and matures, the spot market is gaining share, but term contracts continue to represent most of the market. This is a problem for Canada as it tries to break into the market, as much of current and future demand is already committed.

More than half the current LNG market demand, or 225 mtpa, is under contract until 2040, according to Shell PLC’s LNG outlook report for 2024. A further 100 mtpa is contracted to 2045. Shell recently revised its LNG market growth forecast upward to 700 mtpa by 2040 and it estimates the LNG supply currently in operation or under construction already accounts for about 525 mtpa, or almost 75 per cent of the estimated market in 2040.

Even if Canada secured 100 per cent of the available market share (impossible), this represents a fraction of the 130 trillion cubic feet of reserves in Alberta and an infinitesimal amount of Canada’s natural gas reserve.

If Canada wants to sell its LNG to the global market, it needs to be at the starting line now. Canada has seven LNG export projects in various stages of development. They are all in British Columbia. The capacity of these export plants is 50 mtpa and the capital cost is estimated to be $110 billion.

After significant delays and cost overruns, our first export facility, LNG Canada’s 14 mtpa Phase 1 in Kitimat, is set to ship its first cargo to Asia later this year. Phase 2, representing a further 14 mtpa, is still awaiting a final investment decision. The Cedar LNG, Ksi Lisims LNG and Woodfibre LNG projects are licensed, at various stages of development and represent a further 17 mtpa.

Canada’s LNG exports today are a drop in the bucket compared to both our potential and the 88 mtpa exported by the U.S. in 2024. We have one project completed and, if history repeats itself and Canada doesn’t get its act together, the runway for the remaining licensed projects will be long, painful and costly.

Financing large capital projects requires predictability with respect to timing and cost. This is also a problem for Canada. As the oil and gas CEOs have pointed out, LNG market players have lost trust in Canada as an investible jurisdiction for these projects.

In the face of Trump’s trade war, Canadians have become pipeline evangelists. Wishful thinking and political talking points won’t be enough if we repeat our decade of own goals on this file. We have literally left billions on the table.

Governments should fast-track all licensed projects, limit special interest distractions and provide the required muscle and financial support to get these projects up and running as soon as possible.

From Churchill, Man., to Quebec to the Maritimes to British Columbia, we should be making plans for LNG terminals and the required pipeline infrastructure to get this valuable and clean resource to market. And Canadians should pray we haven’t totally missed the market.

Susan McArthur is a former venture capital investor, investment banker and current corporate director. She has previously served on a chemical logistics and oil service board.

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Land use will be British Columbia’s biggest issue in 2026

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By Resource Works

Tariffs may fade. The collision between reconciliation, property rights, and investment will not.

British Columbia will talk about Donald Trump’s tariffs in 2026, and it will keep grinding through affordability. But the issue that will decide whether the province can build, invest, and govern is land use.

The warning signs were there in 2024. Land based industries still generate 12 per cent of B.C.’s GDP, and the province controls more than 90 per cent of the land base, and land policy was already being remade through opaque processes, including government to government tables. When rules for access to land feel unsettled, money flows slow into a trickle.

The Cowichan ruling sends shockwaves

In August 2025, the Cowichan ruling turned that unease into a live wire. The court recognized the Cowichan’s Aboriginal title over roughly 800 acres within Richmond, including lands held by governments and unnamed third parties. It found that grants of fee simple and other interests unjustifiably infringed that title, and declared certain Canada and Richmond titles and interests “defective and invalid,” with those invalidity declarations suspended for 18 months to give governments time to make arrangements.

The reaction has been split. Supporters see a reminder that constitutional rights do not evaporate because land changed hands. Critics see a precedent that leaves private owners exposed, especially because unnamed owners in the claim area were not parties to the case and did not receive formal notice. Even the idea of “coexistence” has become contentious, because both Aboriginal title and fee simple convey exclusive rights to decide land use and capture benefits.

Market chill sets in

McLTAikins translated the risk into advice that landowners and lenders can act on: registered ownership is not immune from constitutional scrutiny, and the land title system cannot cure a constitutional defect where Aboriginal title is established. Their explanation of fee simple reads less like theory than a due diligence checklist that now reaches beyond the registry.

By December, the market was answering. National Post columnist Adam Pankratz reported that an industrial landowner within the Cowichan title area lost a lender and a prospective tenant after a $35 million construction loan was pulled. He also described a separate Richmond hotel deal where a buyer withdrew after citing precedent risk, even though the hotel was not within the declared title lands. His case that uncertainty is already changing behaviour is laid out in Montrose.

Caroline Elliott captured how quickly court language moved into daily life after a City Richmond letter warned some owners that their title might be compromised. Whatever one thinks of that wording, it pushed land law out of the courtroom and into the mortgage conversation.

Mining and exploration stall

The same fault line runs through the critical minerals push. A new mineral claims regime now requires consultation before claims are approved, and critics argue it slows early stage exploration and forces prospectors to reveal targets before they can secure rights. Pankratz made that critique earlier, in his argument about mineral staking.

Resource Works, summarising AME feedback on Mineral Tenure Act modernisation, reported that 69.5 per cent of respondents lacked confidence in proposed changes, and that more than three quarters reported increased uncertainty about doing business in B.C. The theme is not anti consultation. It is that process, capacity, and timelines decide whether consultation produces partnership or paralysis.

Layered on top is the widening fight over UNDRIP implementation and DRIPA. Geoffrey Moyse, KC, called for repeal in a Northern Beat essay on DRIPA, arguing that Section 35 already provides the constitutional framework and that trying to operationalise UNDRIP invites litigation and uncertainty.

Tariffs and housing will still dominate headlines. But they are downstream of land. Until B.C. offers a stable bargain over who can do what, where, and on what foundation, every other promise will be hostage to the same uncertainty. For a province still built on land based wealth, Resource Works argues in its institutional history that the resource economy cannot be separated from land rules. In 2026, that is the main stage.

Resource Works News

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What Do Loyalty Rewards Programs Cost Us?

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You’ve certainly been asked (begged!) to join up for at least one loyalty “points” program – like PC Optimum, Aeroplan, or Hilton Honors – over the years. And the odds are that you’re currently signed up for at least one of them. In fact, the average person apparently belongs to at no less than 14 programs. Although, ironically, you’ll need to sign up to an online equivalent of a loyalty program to read the source for that number.

Well all that warm, fuzzy “belonging” comes with some serious down sides. Let’s see how much they might cost us.

To be sure, there’s real money involved here. Canadians redeem at least two billion dollars in program rewards each year, and payouts will often represent between one and ten percent of the original purchase value.

At the same time, it’s estimated that there could be tens of billions of unredeemed dollars due to expirations, shifting program terms, and simple neglect. So getting your goodies isn’t automatic.

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Just why do consumer-facing corporations agree to give away so much money in the fist place?

As you probably already know, it’s about your data. Businesses are willing to pay cold, hard cash in exchange for detailed descriptions of your age, sex, ethnicity, wealth, location, employment status, hobbies, preferences, medical conditions, political leanings, and, of course, shopping habits.

Don’t believe it works? So then why, after all these years, are points programs still giving away billions of dollars?

Every time you participate in such a program, the data associated with that activity will be collected and aggregated along with everything else known about you. It’s more than likely that points-based data is being combined with everything connected to your mobile phone account, email addresses, credit cards, provincial health card, and – possibly – your Social Insurance number. The depth and accuracy of your digital profile improves daily.

What happens to all that data? A lot of it is shared with – or sold to – partners or affiliates for marketing purposes. Some of it is accidentally (or intentionally) leaked to organized criminal gangs driving call center-related scams. But it’s all about getting to know you better in ways that maximize someone’s profits.

One truly scary way this data is used involves surveillance pricing (also known as price discrimination) – particularly as it’s described in a recent post by Professor Sylvain Charlebois.

The idea is that retailers will use your digital profile to adjust the prices you pay at the cash register or when you’re shopping online. The more loyal you are as a customer, the more you’ll pay. That’s because regular (“loyal”) customers are already reliable revenue sources. Companies don’t need to spend anything to build a relationship with you. But they’re more than willing to give up a few percentage points to gain new friends.

I’m not talking about the kind of price discrimination that might lead to higher prices for sales in, say, urban locations to account for higher real estate and transportation costs. Those are just normal business decisions.

What Professor Charlebois described is two customers paying different prices for the same items in the same stores. In fact, a recent Consumer Reports experiment in the U.S. involving 437 shoppers in four cities found the practice to be quite common.

But the nasty bit here is that there’s growing evidence that retailers are using surveillance pricing in grocery stores for basic food items. Extrapolating from the Consumer Reports study, such pricing could be adding $1,200 annually to a typical family’s spending on basic groceries.

I’m not sure what the solution is. It’s way too late to “unenroll” from our loyalty accounts. And government intervention would probably just end up making things worse.

But perhaps getting the word out about what’s happening could spark justified mistrust in the big retailers. No retailer enjoys dealing with grumpy customers.

Be grumpy.

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