KOGAS strengthens energy security with Canadian LNG Project

March 19, 2026

A panoramic view of the liquefied natural gas (LNG) production facility operated by Korea Gas Corporation (KOGAS) in Kitimat, British Columbia, western Canada. (Photo provided by KOGAS)

KOGAS’s 15 Years of ‘Perseverance’ in LNG Canada Project Contributes Supply Diversification Away from Middle East Dependence

Recently, the US-Iran war has led to the blockade of the Strait of Hormuz, through which approximately 20% of the world’s oil and liquefied natural gas (LNG) shipments pass, triggering an emergency in global energy supply and demand. Amid this situation, Korea Gas Corporation (KOGAS)’s ‘LNG Canada’ project is drawing attention as a key bulwark for protecting national energy security as an alternative to reduce dependence on the Middle East.According to the energy industry on March 13, the LNG Canada project, which KOGAS has been pursuing for 15 years, is a large-scale project that produces and exports low-carbon LNG.

Following the first LNG production in Kitimat, British Columbia, western Canada, in June last year, KOGAS’s equity volume first arrived at the Tongyeong Terminal in Korea in September of the same year. Approximately 700,000 tons of LNG is expected to be imported into Korea by the end of this year.

Above all, the strategic value is significant in that LNG can be brought into Korea through the Pacific shipping route without passing through the Strait of Hormuz. The import distance is also shorter than routes from the Middle East or the US Gulf of Mexico, enabling approximately 20% savings in transportation costs, which is assessed as highly economical.

For this project, KOGAS constructed a dedicated large-diameter pipeline with a total length of 670km crossing the rugged Rocky Mountains to transport natural gas to the western coast of Canada over a period of 5 years.

The LNG Canada project successfully achieved commercial production within the budget approved by the board of directors (97% executed). Through this project, KOGAS has secured approximately 700,000 tons of LNG annually, and annual revenue of approximately 450 billion won is expected.

KOGAS is accelerating the Phase 2 expansion project, using the success of this Phase 1 commercial operation as a springboard. Once the Phase 2 expansion project is completed, the LNG Canada project will have an annual production capacity of 28 million tons.

Source: BusinessKorea