Canada backs Woodfibre LNG expansion to diversify trade and support low-carbon exports
Canada is stepping up support for major energy projects as it pursues trade diversification and domestic job creation amid global economic uncertainty. A new federal commitment of $200 million to Woodfibre LNG also positions the project as a flagship low-emissions export facility tied to Indigenous partnership and Asian market access.
Highlights
- Ottawa invests $200 million in Woodfibre LNG, targeting net-zero LNG production by late 2027 and Indigenous-led environmental approval.
- Woodfibre LNG's emissions intensity projected at nine times lower than global LNG averages, potentially avoiding emissions equal to 140,000 cars annually.
- Project supports Canada's aim to double non-U.S. trade, creates 1,500 construction jobs and 100 permanent jobs in Squamish region, and advances Indigenous economic participation.
Federal funding and project timeline
According to Government of Canada, Energy and Natural Resources Minister Tim Hodgson says Ottawa is investing $200 million in Woodfibre LNG as part of the objectives set out in Budget 2026. The funding supports a project the federal government presents as part of a broader push to accelerate major projects, attract capital and build a more independent economy.Woodfibre LNG is being developed in collaboration with the Sḵwx̱wú7mesh Úxwumixw, or Squamish Nation, and is described as the first major industrial project in Canadian history to gain approval through a non-treaty, Indigenous-led environmental assessment process. The facility, powered by British Columbia hydroelectricity, is expected to become the world's first net-zero LNG facility when operations begin in late 2027.
According to Woodfibre LNG, the project's emissions intensity is expected to be about nine times lower than the global average for LNG export facilities. The company says that would be equivalent to avoiding emissions from roughly 140,000 cars each year compared with a typical LNG facility.
Trade diversification and regional economic impact
Ottawa says exports of low-carbon Canadian LNG to allies in Asia and other markets support its goal of doubling non-U.S. trade. The project is also expected to create economic activity in the Squamish region, with about 1,500 people working on site each day during construction and 100 full-time jobs once operations begin.The government argues that increasing Canadian energy exports can strengthen global energy security while generating domestic economic benefits and lowering emissions relative to more carbon-intensive supply. It also links the project to broader policy goals including Indigenous economic participation, reconciliation and stronger trade resilience beyond the U.S. market.
In a previous article, we explained how Colorado River drought is set to push Southwest hydropower output to seasonal lows in 2026.
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