Canada eyes India to boost LNG exports

Upstart LNG exporter Canada is targeting India for a rise in sales with Prime Minister Mark Carney expected to visit the energy-hungry country in the coming weeks, Bloomberg reported on January 30.

India is leaning in heavily on LNG to serve as a transition fuel as the country seeks to reduce coal consumption to meet its climate targets.

New Delhi has set its sights on increasing the portion of natural gas in its energy mix to 15% by the end of the decade. Currently, natural gas comprises around 7% of the country’s energy mix.

The Asian powerhouse has been steadily improving its LNG infrastructure and in March 2024, India brought online the country’s eighth LNG production plant.

The 5mn tonnes per year (tpy) Chhara LNG import terminal, which was developed by Hindustan Petroleum Corp. in the state of Gujarat in western India added further import capabilities.

Meanwhile, Canada is seeking to diversify its energy trade partners falling repeated threats of tariffs from US President Donald Trump.

Trade ties between Canada and India have been improving under Mark Carney’s leadership. The two countries encountered a rocky relationship under previous Canadian Prime Minister Justin Trudeau in the fallout of the murder of a prominent Sikh activist in Vancouver.

“India has huge demand for new LNG,” Canadian Minister of Energy and Natural Resources Tim Hodgson told reporters on January 30 after returning to Canada following a trip to Goa for India Energy Week.

Canada’s LNG export terminal on its west coast are ideally situated for quick and direct travel to Asia. Canada is prioritising targeting major LNG importers South Korea and Japan, but will need to look further beyond East Asia as it brings online more terminals in the future.

Canada’s LNG export capacity could reach up to 50mn tpy by 2030. Currently, only its flagship project LNG Canada is exporting cargoes, however progress is moving steadily on other key projects in western Canada including Woodfibre LNG and Ksi Lisims LNG.