Canada commits $200 million to expand B.C. LNG project and boost exports to Asia

ASM, Philippine Canadian Inquirer
November 14, 2026

Photo courtesy: Asia Pacific Foundation of Canada

The Canadian government has announced $200 million in funding for the Woodfibre liquefied natural gas (LNG) project near Squamish, British Columbia, as part of efforts to expand energy exports and strengthen trade relationships beyond the United States.

Federal Energy and Natural Resources Minister Tim Hodgson announced the investment on November 13, with funding expected to be provided over three years.

The investment will support improvements to the facility’s production capacity, efficiency and reliability while allowing the developer to explore a potential second phase of expansion.

Project could produce more LNG

Woodfibre LNG is under construction along Howe Sound, southwest of Squamish.

The facility was originally designed to produce approximately 2.1 million tonnes of liquefied natural gas annually.

With the additional investment, its targeted production capacity could increase to between 2.5 million and 2.6 million tonnes per year.

That would represent an increase of roughly 19% to 24% over the original design.

The facility will receive natural gas, cool it into liquid form and load it onto specialized vessels for export to international markets.

Canada targets Asian energy markets

Hodgson said Canada’s Pacific coastline provides an important advantage in reaching growing energy markets across Asia.

The federal government views LNG exports as part of its broader strategy to diversify trade, strengthen the energy sector and reduce economic dependence on the United States.

The project is expected to support approximately 1,500 workers on-site daily during construction and create about 100 permanent positions once operational.

The federal government says the facility is expected to begin operations in late 2027.

Indigenous partnership and environmental commitments

Woodfibre LNG is being developed in collaboration with the Squamish Nation.

The project underwent an Indigenous-led environmental assessment, which the federal government describes as the first of its kind for a major industrial development in Canada.

The facility is designed to operate using electricity from British Columbia’s hydroelectric power system.

Its developer projects significantly lower operating emissions than conventional LNG export facilities.

The federal government has described Woodfibre LNG as a potential net-zero LNG operation, although those claims relate to the facility’s projected operating emissions and should not be interpreted as eliminating emissions from the entire natural gas supply chain or from burning the exported fuel.

Expansion remains under development

British Columbia Premier-designate Lorne Doerkson welcomed the funding, noting that the project was approximately three-quarters complete.

The investment comes as Canada seeks to increase its role in international energy markets and encourage more development along the Pacific Coast.

While the additional funding is confirmed, the targeted increase in production and the potential second phase remain subject to project development and implementation.