U.S. records highest ever LNG exports in August — courtesy of ethical Canadian energy

Economists say U.S. LNG exports to Europe are typically priced higher than Canadian gas sold to U.S. producers.

 

Despite criticisms that Canada failed to export natural gas to Europe, the Polish ambassador to Canada stated that Canadian gas reaches Europe via the U.S., incurring a markup.

“Remember; some of the LNG that’s coming from the United States to Europe, to Poland, is also Canadian … but it’s being sold for a much higher price,” Witold Dzielski told CBC News when asked about Polish demand for Canadian LNG.

Europe remains the top destination for U.S. LNG exports, receiving 6.16 million tons (66% of total) in August, up from 5.25 million tons (58%) in July, according to LSEG data.

Jamie Heard of Tourmaline, a Canadian natural gas producer, told the National Post that "nearly all" of their U.S.-exported natural gas has ended up in Europe. He said Cheniere Energy, the U.S. exporter of Tourmaline's product, is earning a "fair return" from their arrangement.

LNG exports to Europe are typically priced higher than Canadian gas sold to U.S. producers, confirmed University of Alberta energy economist Andrew Leach.

Canada's energy minister, Tim Hodgson, publicly criticized former prime minister Justin Trudeau for neglecting the Canadian LNG sector. This statement coincides with that criticism.

“Unlike the previous Canadian government, which closed the door to LNG exports, Prime Minister (Mark) Carney’s government has opened it,” Hodgson said in prepared remarks at the Canadian embassy in Berlin last week.

Canada largely exports natural gas to the U.S. via pipeline; only the new Kitimat terminal ships elsewhere.

LNG Canada's $18-billion terminal in Kitimat, B.C., Canada's only operational LNG export facility, started operations in late June with the GasLog Glasgow's loading. This contrasts sharply with the United States, which has eight such facilities, all opened since 2016.

U.S. LNG exports, meanwhile, reached an all-time high in August as plants exited planned maintenance programs, preliminary data from financial firm LSEG show. 

Since 2022, Canadian gas has been shipped across the Atlantic to compensate for Russian gas supplies halted by European sanctions. A Deloitte outlook from that year noted that "every spare cubic foot of Canadian natural gas not used domestically is exported to the United States for LNG export."

Heard opened the door for Canada to be more involved. “The opportunity can grow with the addition of Canadian infrastructure,” he wrote.

A Canadian alternative would require thousands of kilometers of new pipelines through mountains to new export facilities on the Canadian Atlantic Coast.

Though initially uncompetitive, it could become more cost-effective with increased scale and pipeline investment. The consistent arrival of Canadian LNG in Europe strengthens the argument for Canadian port loading.

Canadian gas currently flows into the U.S. through an existing pipeline network across flat, industrialized land to established U.S. Gulf Coast petrochemical ports.

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Alex Dhaliwal

Journalist and Writer

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

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COMMENTS

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  • Bernhard Jatzeck
    commented 2025-09-04 21:41:04 -0400
    But but but but there was no business case for Canada to sell LNG to Europe! The greatest PM in history told us that.
  • Bruce Atchison
    commented 2025-09-04 19:39:10 -0400
    Selling LNG to America is just another way the Liberals rip off the west. Imagine if Canadian-built cars went to America at a discount and were resold at a large mark-up. Doug Ford would be freaking out and Marx Carnage would never stop talking how his elbows-up approach will lower those prices.