Energy and Natural Resources Minister Jonathan Wilkinson has made it clear that the federal government has no intention of subsidizing future liquefied natural gas (LNG) projects in Canada. In an interview with CTV Question Period, Wilkinson stated that such investments are the responsibility of the private sector.
“We are opposed to using government funds to support inefficient fossil fuel subsidies. We’re the first country in the world to take this stance. We are not interested in investing in LNG facilities; that’s the role of the private sector. They need to evaluate the business case and make the necessary investments,” said Wilkinson.
Wilkinson’s remarks come shortly after Greek Prime Minister Kyriakos Mitsotakis expressed interest in purchasing Canadian LNG if it were available. Despite international interest, Wilkinson emphasized that Canada’s focus remains on meeting its climate commitments rather than promoting LNG exports.
The minister reiterated Canada’s commitment to reducing oil and gas methane emissions by at least 75 percent from 2012 levels by 2030. He emphasized the importance of future LNG projects relying on clean electricity to meet these climate goals.
While Wilkinson acknowledged ongoing projects in Western Canada, he emphasized that any future LNG projects must align with Canada’s climate objectives. He emphasized the need for projects to fit within a framework that respects the country’s commitments to emissions reductions.
Currently, there are eight LNG export projects in various stages of development across Canada, according to Natural Resources Canada. The Shell-led LNG Canada project in Kitimat, British Columbia, is set to become Canada’s first large-scale LNG export facility, aiming for its first exports by 2025 to Asian markets.
Wilkinson’s stance reflects the federal government’s prioritization of climate action over investments in fossil fuel infrastructure. As Canada continues to navigate its energy transition, the debate over the role of LNG exports in the country’s energy future is likely to persist.
