NGI’s Hub & Flow LNG Canada Is Exporting – So Why Are Canada’s Natural Gas Prices Weakening?
Jul 28, 2025
This discussion dives into Canada's significant leap into LNG exports, marked by the historic shipment to South Korea. Despite this progress, Canadian gas prices are falling due to oversupply and production boosts. The editors highlight the unique advantages of Canadian LNG, such as shorter shipping times to Asia, while facing infrastructure challenges. They also explore the long-term market implications as new projects reshape demand and pricing dynamics in North America.
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Shell's LNG Canada Milestone
- Shell's LNG Canada project shipped its first large-scale cargo in June after a decade since its announcement.
- Other Canadian export projects are progressing, expected to significantly add to LNG demand by the end of the decade.
Canada's Gas Prices Weaken
- Canadian natural gas prices have weakened due to producers ramping up production faster than demand growth.
- This dynamic contrasts with the U.S., where LNG capacity additions face more uncertainty in supply-demand balance.
Challenges of Canadian LNG Infrastructure
- Building LNG infrastructure in remote Canadian areas involves risks of cost overruns and delays.
- Remote locations require floating hotels for workforce accommodation, increasing project complexity and expense.