Reference News Network, July 10 report: The UK's Financial Times website published an article titled "Canada Seeks to Become an Energy Superpower" on July 3, authored by Jamie Smith. Excerpts follow:

Canadian LNG has launched a new project—a large-scale liquefaction facility recently began exporting liquefied natural gas (LNG) to Asia. This project is the first of several planned LNG export terminals along Canada's west coast. These facilities will enable Canadian producers to transport large volumes of natural gas to regions outside the United States, which is currently its only export market.

Promoting LNG trade is part of a broader strategy by the Canadian government. The government has committed to developing abundant fossil fuel resources, reducing reliance on the U.S. market, and positioning Canada as an "energy superpower."

However, implementing this strategy is not easy. Canada is one of the world's top five natural gas and oil producers, but successive governments have failed to build sufficient infrastructure for companies to export hydrocarbons globally. Over 90% of Canada's oil and gas exports flow south of the border, and at prices lower than domestic U.S. products, because the U.S. can more conveniently transport its own products to Europe and Asia, where customers pay higher prices.

Stringent environmental regulations, vast territory, remote energy sources, and strong anti-fossil fuel movements make pipeline construction challenging, leaving Canada heavily reliant on the U.S. market.

Canada also faces fierce competition in the export market from the U.S. The U.S. is the world's largest oil and gas producer, with ambitious plans to build new export terminals along the Gulf Coast to double its LNG output. Trump promised to achieve "U.S. energy dominance," urging Asian governments to purchase more U.S. LNG to avoid punitive tariffs.

Critics point out that if Canada fails to seize the opportunity to expand oil and gas exports, its economy could suffer. Given Trump's threat that tariffs may be imposed if trade negotiations fail, Canada faces the risk of economic slowdown. Moreover, this could exacerbate separatist sentiments in Alberta, a province rich in oil resources.

Alex Monaghan, an analyst at the U.S. Rappahannock Energy Consulting, said: "Ten years ago, Canada hoped to win the LNG competition against the U.S. by leveraging its closer proximity to the Asian market and relatively amicable relations with China."

He said: "Clearly, those hopes have not materialized. Now the question is whether Canada's LNG projects are just a fleeting phenomenon or if more major projects will take shape."

Mark Carrega, an analyst at the Institute for Energy Economics and Financial Analysis, a think tank focused on advancing the energy transition, said: "In countries where numerous LNG export terminals have emerged, such as the U.S. and Qatar, there is already substantial existing infrastructure. However, in western Canada, everything must be built from scratch, making costs high."

Carrega also pointed out that opposition from local communities and Indigenous peoples could lead to project delays and cost overruns.

The Canadian natural gas industry complains it is struggling to catch up with the U.S. Meanwhile, executives at Canada LNG have downplayed the risks of project delays and cost overruns for local projects and hope their facilities' operations will usher in a new era of growth.

According to Wood Mackenzie, an energy research firm, the cost of Canadian LNG reaching Japan is roughly comparable to the cost of LNG from the U.S. Gulf Coast reaching Japan, and may even be lower.

The energy industry says that if Canada wants to fully realize its potential as an energy superpower, federal and provincial governments must repeal relevant regulations and support the industry's development.

The industry states that although cost and funding are key challenges for new natural gas projects, a series of policies under the Trudeau era are still hindering actual development. Shortly after Kanai took office, he abolished the controversial carbon tax, but it seems he is not planning to cancel the proposed emission caps for oil and gas producers. According to a regulatory draft issued by the federal government in November last year, energy companies must reduce their carbon emissions by about a third within eight years.

François Poirier, CEO of TC Energy, said Canada could play an important role in reducing carbon emissions in Asia by producing LNG that can replace coal. However, federal and provincial emission caps may weaken Canada's ability to achieve this goal.

Many analysts believe that LNG is the best short-term option for Canada to rapidly increase energy exports, given the surge in global demand, the government's planned multiple projects, and the increasing political support for this fuel, which can be marketed as a tool for decarbonization in Asian economies. (Translated by Liu Baiyun)

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