Growing global demand for secure, reliable energy is creating a major opportunity for Canada, according to experts who say Asia’s growing needs underscore the case for more export capacity on the West Coast.
“I wish there were a few more Canadas in the world, so that we can have a much more reliable and sustainable global energy system,” the International Energy Agency (IEA)’s executive director Fatih Birol said during a recent trip to Canada.
Even before recent disruptions tied to conflict in the Middle East, the need for more Canadian energy in global markets was clear.
Growing shipments to Asia
The evidence can be seen in growing shipments from two newly completed pieces of export infrastructure: the Trans Mountain oil pipeline expansion and the LNG Canada natural gas export terminal.
In April, LNG Canada reached a key ramp-up milestone with its first exports of one million tonnes of liquefied natural gas (LNG) in a single month. Since start-up in June 2025, every shipment from the facility in Kitimat, B.C., has gone to Asia, led by South Korea, according to the Canada Energy Regulator.
Meanwhile, Trans Mountain reports that since May 2024, more than half of ocean exports from its expansion project have gone to Asia, primarily China and South Korea.
Demand growth for decades
But it’s just the tip of the iceberg, according to energy analysts and researchers who argue that rising global consumption — particularly in Asia — means Canada needs another oil pipeline to the Pacific coast, alongside new LNG export terminals under construction.
“The Pacific Basin is still underserved. Asia is the world’s biggest energy market, and Indian and Southeast Asian growth is just taking off,” said Heather Exner-Pirot, senior fellow and director of energy, natural resources and environment at the Macdonald-Laurier Institute.
That presents a major opportunity for both Canada’s natural gas and oil resources.
Asian markets will continue to drive growth in oil and gas demand for decades, the International Energy Agency (IEA) projects.
Asia’s need for both oil and natural gas
By 2050, natural gas demand in the Asia-Pacific region is expected to be nearly 60 per cent higher than it is today, according to the IEA’s latest outlook.
Meanwhile, regional oil demand is projected to grow by close to 20 per cent.
Globally, demand for extra-heavy oil and bitumen like what Canada produces is expected to rise by nearly 40 per cent over the next 25 years.
Many Asian refineries are configured to process heavier crude grades like those produced in Canada.
China, the world’s largest oil importer, alone represents enormous potential for export growth.
Mutually beneficial energy supply
The Asia Pacific Foundation of Canada (APF) argues that Canada is well positioned as China looks to diversify its suppliers and reduce reliance on Russia and the Middle East to feed its refineries and petrochemical sector.
In addition to being more politically stable than many global suppliers, Canada can ship oil and gas to Asia in about half the time it takes from the U.S. Gulf Coast through the Panama Canal.
“The result is mutually beneficial: Canada secures better revenues and greater market diversification while China gains a stable, low-cost oil supply,” wrote APF’s Xiaoting (Maya) Liu and Rachael Gurney.
A new oil pipeline from Alberta to the West Coast should be viewed as insurance, providing options in an uncertain world for both Canada and crude oil buyers, wrote Jackie Forrest, executive director of the ARC Energy Research Institute, in The Globe and Mail.
This article was originally produced by the Canadian Energy Centre. See the original article here.