Canada’s LNG Mirage: Why Most Projects Won’t Be Built and Taxpayers Won’t See the Payoff - CleanTechnica

The article from CleanTechnica argues that most proposed Canadian liquefied natural gas (LNG) export projects are unlikely to be built or to deliver the economic returns promised to taxpayers. This is due to a fundamental shift in global energy demand dynamics: LNG markets are currently oversupplied, with over 150 million tons per year of export capacity already under construction worldwide, exceeding plausible demand growth even under conservative scenarios. Rapid expansion of solar power and battery storage, especially in Asia, is displacing gas-fired electricity generation and reducing LNG demand. By the early 2030s, LNG demand in Asia is expected to contract rather than grow, undermining the assumptions underpinning Canadian LNG investments. Additionally, rising financing costs for fossil fuel infrastructure and a shift of capital toward renewables and grid infrastructure make LNG projects riskier and more expensive. LNG remains the costliest and least flexible energy source compared to domestic solar and wind paired with batteries, which provide cheaper and more reliable electricity. Real-world examples such as