Amid criticism regarding Canada's natural gas exports to Europe, the Polish ambassador to Canada stated that Canadian gas is indeed reaching Europe, albeit through the United States and at a higher price. Ambassador Witold Dzielski remarked, "Remember; some of the LNG that’s coming from the United States to Europe, to Poland, is also Canadian … but it’s being sold for a much higher price." His comments were noted by Conservative Leader Pierre Poilievre, who suggested that Dzielski was amused by the situation.
The ambassador's statement coincided with remarks from Canada’s energy minister, Tim Hodgson, who criticized former Prime Minister Justin Trudeau for not prioritizing the Canadian LNG sector. Hodgson stated, "Unlike the previous Canadian government, which closed the door to LNG exports, Prime Minister (Mark) Carney’s government has opened it."
Jamie Heard, an executive at Tourmaline, a Canadian natural gas producer, indicated that nearly all of their LNG exports to the U.S. eventually end up in Europe. He noted that this arrangement has been beneficial for Tourmaline, allowing them to transport Canadian gas across the Atlantic. However, he also pointed out that U.S. exporter Cheniere Energy is profiting from this business, which contributes to higher tax revenues for the U.S. government. Heard mentioned, "The opportunity can grow with the addition of Canadian infrastructure."
Currently, Canada has only one operational LNG export facility, located on the West Coast. The facility, LNG Canada, opened just two months ago and loaded its first tanker, the GasLog Glasgow, in late June. In contrast, Australia has ten LNG export terminals, and the United States has eight, all of which have opened since 2016. While Canada is one of the world’s largest LNG exporters, 99.9 percent of its gas is sent to the U.S. via pipeline.
Since at least 2022, it has been evident that much of this Canadian gas is being exported to help replace Russian gas supplies affected by European sanctions. A Deloitte oil and gas outlook from that year noted, "It appears that every spare cubic foot of Canadian natural gas that’s not being used for domestic consumption is being exported to the United States for LNG export."
Energy economist Andrew Leach from the University of Alberta confirmed that LNG exports to Europe are sold at a higher price than Canadian gas sold to U.S. producers. However, he clarified that this price disparity does not necessarily indicate that Canada has willingly forfeited LNG profits to American middlemen. He explained that Canadian gas exports to the U.S. benefit from an established pipeline network that connects to well-developed petrochemical ports on the Gulf Coast. In contrast, creating a similar network in Canada would require extensive new pipelines through challenging terrain and the construction of new export facilities on the Atlantic Coast.
Leach also noted that the U.S. Atlantic Coast has struggled to establish a significant presence in the LNG sector, with the Gulf Coast dominating the market. Of the 13 U.S. LNG export terminals either operational or under construction, only two are located outside the Gulf Coast. The closest terminal to Canada is the Cove Point LNG Terminal, situated just outside Washington, D.C. Leach concluded, "It’s the Canadians that are capitalizing on the fact that the U.S. has built this infrastructure."