Canada is strategically positioning itself to enhance energy ties with Asia, as evidenced by Prime Minister Mark Carney‘s recent visit to Beijing and his participation in the Association of Southeast Asian Nations (ASEAN) summit in October 2025. This diplomatic engagement underscores Canada’s recognition of the Indo-Pacific region as a vital economic landscape, contributing up to 60 percent of global growth.
The economic dynamics in Asia are compelling. While countries like Japan and South Korea are seeing growth rates between 1 percent and 2 percent for 2025, China is projected to sustain a growth rate of 4.2 percent and India at 6.6 percent. ASEAN nations, including Vietnam and Indonesia, are also experiencing growth at 4.3 percent. Each of these nations shares a common goal: the pursuit of reliable and accessible energy sources.
On the first day of Carney’s visit, Canada and China reached an agreement to collaborate on both clean and conventional energy sources. As global energy demands continue to rise, the need for stable and diversified suppliers becomes increasingly critical. This cooperation could position Canada as a key player in the Asian energy market.
Redefining Economic Relationships
The shift in Canada’s energy strategy comes against the backdrop of recent geopolitical tensions. In February 2025, former U.S. President Donald Trump initiated a trade war that prompted Canada to reassess its economic dependencies. Carney, having taken office in April 2025, articulated a vision to transform Canada into an energy superpower, emphasizing both clean and conventional energy solutions. This pivot aligns with the aspirations of Asian countries, which are also focused on diversifying their supply chains and establishing reliable trading partnerships.
According to Statistics Canada, combustible minerals, including oil and natural gas, represented 25 percent of Canadian exports in 2024. Despite this, the majority of Canadian energy resources—approximately 89.33 percent—are exported to the United States. If Canada is to realize its ambition of becoming an energy superpower, it must establish stronger trade relations with Asian markets, which are increasingly seeking energy security.
Asia’s Growing Energy Demand
The reliance on fossil fuels remains prevalent in Asia, particularly in emerging economies. Data from the International Energy Agency indicates that industry and transportation are the largest consumers of energy in the region, and this demand is expected to rise as urbanization and industrialization continue. Currently, coal constitutes 49.3 percent of primary energy consumption in the Indo-Pacific, while also accounting for 57 percent of electricity generation.
As coal reserves begin to deplete, countries like South Korea, Japan, and China—the world’s largest crude oil importer—are facing urgent energy challenges. In 2025, China set a record by importing 11.5 million barrels per day of crude oil. This scenario creates opportunities for countries like Indonesia and Malaysia, which are major exporters of coal and liquefied natural gas (LNG) respectively. However, a report from the ASEAN Oil and Gas Updates 2024 indicates Southeast Asia will likely become a net gas importer by 2027.
To address these challenges, governments across Southeast Asia are prioritizing energy security and the transition to cleaner energy sources. Significant investments are being made in infrastructure, including new regasification and liquefaction plants. As of 2023, the region boasted a regasification capacity of 57.76 million tonnes per annum (mtpa) and a liquefaction capacity of 64.1 mtpa, with plans for further expansion through 2030.
In China, LNG infrastructure development is accelerating, with an operational regasification capacity of 161 mtpa and another 110 mtpa under construction.
Canada’s competitive edge lies in its geographic advantages and new developments in its energy export capabilities. With the successful departure of the first Canadian LNG ship to Asia from the port of Kitimat in July 2025, Canada is poised to tap into this burgeoning market. The majority of the project partners are Asian companies, including Petronas, PetroChina, Mitsubishi Corporation, and KOGAS.
The expansion of the Trans Mountain Pipeline network has also increased Canada’s oil export capacity to 890,000 barrels per day, facilitating exports to Asian markets. As demand for Canadian oil rises, the price per barrel has seen significant increases within months.
While the United States has emerged as the world’s leading LNG exporter since 2016, Canada’s strategic investments and geographic advantages present a unique opportunity to compete in this critical market. The pressing question remains: who will ultimately benefit from the growing energy demand in Asia, Canada or its competitors?
Yaxin Zhou is affiliated with the Centre d’études et de recherches internationales (CÉRIUM) at L’Université de Montréal and has no financial interests or affiliations that could benefit from this article.
