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Canada-Japan Energy Trade Deal Targets LNG Growth

Bloomberg Markets •
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Canadian Prime Minister Mark Carney and Japanese Prime Minister Sanae Takaichi unveiled plans to expand energy trade and military cooperation during Carney's Tokyo visit. The agreements focus on increasing liquefied natural gas and liquefied petroleum gas exports from Canada to Japan, with Carney projecting Canada could double its LNG exports by decade's end and double again by 2040.

Takaichi highlighted LNG Canada, a major export terminal on Canada's west coast where Japan's Mitsubishi Corp. holds a stake, as a cornerstone of bilateral energy ties. The terminal began shipments last year and is considering expansion that would double output. The leaders also pledged collaboration on nuclear and clean energy projects, with Carney announcing plans for a large trade mission to Japan in 2026.

Defense cooperation agreements include combating illegal fishing in the North Pacific, joint naval exercises, and enhanced cybersecurity measures. Takaichi emphasized building on existing legal frameworks for information sharing and defense technology transfer. With diplomatic relations reaching their centennial in 2028, both leaders stressed the strategic importance of deepening ties between the two nations.