LNG Canada has significantly increased its liquefied natural gas (LNG) exports to Asia this month, shipping five cargoes in the first eleven days of March, as the ongoing conflict involving Iran threatens global energy supplies. The facility, located in Kitimat, British Columbia, is now operating near its full capacity of 14 million metric tons per year, according to data from LSEG.
The surge in Canadian LNG exports comes as global markets adjust to disruptions caused by the Iran conflict, which has prompted Qatar – a major LNG supplier providing roughly 20% of the global trade – to halt production and declare force majeure due to blocked tanker transit through the Strait of Hormuz. The increased output from LNG Canada is intended to help offset these losses and meet rising demand from Asian markets, particularly Japan, South Korea and the Philippines, which have been the recipients of the recent shipments.
A spokesperson for LNG Canada confirmed that a 58th cargo is scheduled to depart in the coming days, and that the plant is currently exporting just under 1.2 million metric tons per month. The spokesperson declined to comment on specific current production volumes, but stated the company is “continuing to advance early operations at the site safely and responsibly.”
Analysts at RBN Energy note that LNG Canada is “further ramping up activity to push toward full capacity, as well as trying to make a quick surge in LNG output to get more LNG on the water to Asia and take advantage of higher prices in the region.” The Kitimat facility represents the first large-scale Canadian LNG project to begin production and is the first major North American plant with direct access to the Pacific Ocean, offering a shorter shipping route to Asian buyers compared to facilities on the U.S. Gulf Coast.
Despite facing operational challenges since its launch in June 2025, LNG Canada has steadily increased output since January. Canadian natural gas producers had increased production in anticipation of the facility’s startup last summer, but faced a temporary slump in domestic prices when initial drawdowns were slower than expected. Currently, spot prices at the Alberta Energy Company (AECO) storage hub are trading at around $2 per million British thermal units, a $1.25 discount to the U.S. Henry Hub benchmark.
Federal officials are positioning Canada as a stable energy supplier during the current period of global uncertainty, as the war in Iran disrupts oil and gas exports from the Gulf region. The conflict has led to soaring energy prices and warnings against tankers transiting the Strait of Hormuz, a critical waterway for global oil shipments.
