Australia Ships LNG 16,000 Miles (25,750 Kilometers) to Canada as Asia Demand Slumps – Why?

By Sing Yee Ong

Australia is shipping LNG much further than its main buyers in Asia as demand for the super-chilled fuel in the region falters.

East Canada is set to receive its first Australian shipment of the fuel on the Maran Gas Hector on Thursday, according to ship-tracking data compiled by Kpler that goes back to 2008. The journey is unusually long, with the tanker traveling around 16,000 miles (25,750 kilometers) to reach its final destination.

The Maran Gas Hector, which is carrying an Australian shipment, is expected to reach East Canada on Thursday.

The shipment comes as Australia increasingly looks outside its key markets in China, Japan and elsewhere in Asia to find buyers of uncontracted LNG. A cargo from the exporter arrived in Turkey over the weekend, the first since at least 2017, according to data compiled by Bloomberg, while another went to Chile this year.

Demand in Asia remains weak, with LNG shipments to China — the biggest importer of the gas — dropping 11% in 2025. Some of the nation’s buyers are reselling cargoes, adding to subdued spot demand from Japan, South Korea and Taiwan.

Europe, which competes with Asia for supply, has been more attractive, as LNG imports hit a 10-month high in January during an unusually cold winter.

Australian LNG (liquefied natural gas) is landing in eastern Canada primarily due to a combination of global energy market dynamics and supply diversification. As Europe and North America seek alternatives to traditional suppliers, particularly in the wake of geopolitical tensions and disruptions, Canadian importers are turning to reliable sources like Australia to meet their energy needs. Additionally, the infrastructure in eastern Canada allows for flexible import options, making it feasible to receive LNG shipments from distant producers.

This trend also reflects Canada’s efforts to ensure energy security and manage price volatility by sourcing LNG from various global suppliers, including Australia. The arrival of Australian LNG supports local demand and helps stabilize the market during periods of increased consumption or supply uncertainty.

 

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