An LNG tanker from Australia is sailing 25,750 kilometers to deliver natural gas to Eastern Canada. This rare trade route highlights a glaring issue for your energy supply. Canada sits on vast natural gas resources, yet we import super chilled fuel from across the globe.

According to a recent report from Resource Works, weak Asian demand and buyers chasing better returns are driving this unusual shipment.

Source: Premier of New Brunswick Susan Holt speaks to media prior to the First Ministers Meeting in Saskatoon on Monday, June 2, 2025. THE CANADIAN PRESS/Liam Richards.

The Irony in Saint John

The situation hits hard in Saint John. Your region hosts a massive LNG import terminal owned by Repsol. However, the facility operates far below its capacity. The terminal received about 286,000 tonnes of LNG in 2024 and just 176,000 tonnes in 2023.

This terminal exists because Atlantic Canada lacks a direct pipeline link to western Canadian gas. New Brunswick Natural Resources Minister John Herron calls this the missing piece. He confirms discussions with TC Energy and Repsol are in a nascent stage. Herron is pitching a new connection to extend existing pipeline infrastructure east. This extension allows Saint John to ship LNG overseas to markets like Europe.

The Cost of Connection

Herron estimates the pipeline concept requires a $4 billion to $5 billion investment. The project also needs support from communities and First Nations along the route.

Warren Mabee is an energy policy scholar at Queen’s University. He notes Saint John holds distinct advantages over other export options. The city offers faster access to the open ocean than Montreal and features year round operability unlike Churchill, Manitoba. However, Mabee warns that big projects often face resistance during public consultation.

Political Push and Past Roadblocks

Premier Susan Holt is actively promoting this pipeline extension. She recently spoke with Quebec Premier François Legault. Legault insists any pipeline extension must deliver clear benefits to Quebecers. Holt says she is working to ensure communities between Quebec City and the New Brunswick border gain access to natural gas.

Repsol abandoned an LNG export idea in Saint John in 2023. The company cited high tolling costs to move gas from western production basins and uncertainty around supply. Herron believes the situation is different now. He points to a more supportive federal posture on projects of national interest. Saint John also already has storage tanks and a jetty capable of handling large LNG carriers.

Contractors are currently upgrading the terminal to improve storage efficiency. The facility will soon have the capability to reliquefy boil off gas that otherwise goes down the pipeline.

Instead of moving Canadian gas a few provinces east, ships haul LNG across oceans to keep your lights on and furnaces running during a Canadian winter. Geography does not build infrastructure, and indecision carries a heavy price tag.

Frequently Asked Questions

Why is Saint John importing natural gas from Australia?

Eastern Canada lacks a direct pipeline connection to Western Canada. This missing infrastructure forces the region to import natural gas from overseas to meet energy demands.

How much will a new pipeline to Saint John cost?

New Brunswick Natural Resources Minister John Herron estimates a pipeline extension requires an investment of $4 billion to $5 billion.

Who owns the LNG terminal in Saint John?

Repsol owns and operates the LNG import terminal in Saint John.