Japan Has Sought Increased Energy Imports From Canada
The nation aims to boost its economic security by diversifying energy supplies away from traditional trade routes.
Updated on Sept. 24, 2026 in International Trade
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Japan has expressed a desire to increase energy imports from Canada to bolster its economic security. The strategy focuses on diversifying sources while ensuring reliable supply chains that avoid the Strait of Hormuz.
Why it matters
Securing stable energy imports is critical for Japan to maintain its economic independence, particularly as the nation navigates complex geopolitical shifts and trade dependencies. Strengthening ties with Canada offers a logistical advantage by utilizing secure shipping routes.
Mitsubishi Corp. currently holds a 15-per-cent stake in the LNG Canada project, which began shipping liquefied natural gas to Asian markets in June 2025. This project represents a key pillar in the ongoing bilateral energy trade.
The players
Mitsubishi Corp.
This is a major Japanese multinational conglomerate with diverse interests, including a 15-per-cent ownership stake in the LNG Canada project.
AltaGas Ltd.
This is a Canadian energy infrastructure company that serves as a significant supplier of propane to international markets, including Japan.
The details
Japan also relies on Canada for coal, oil, and uranium, viewing Canada as a strategic partner to hedge against economic coercion elsewhere. Japanese investments in Canada's auto sector remain contingent upon maintaining preferential access to the U.S. market, linking energy policy directly to broader North American trade agreements.
Timeline
AltaGas provided 24% of Japanese propane imports in 2024.
LNG Canada began shipping gas to Asia in June 2025.
AltaGas propane market share in Japan declined to 11% in 2025.
Japanese financial institutions participated in a Toronto investment summit in September 2026.
Market Dynamics
Canada's recent entry as an observer into the Global Combat Air Programme follows a pattern set by increasing efforts to align international trade with national security objectives. This move reflects a broader shift toward deep economic integration between Canada and Japan.
Institutional investors are monitoring the potential Phase 2 expansion of LNG Canada for long-term growth opportunities in the energy sector. Fluctuations in propane market share highlight the ongoing volatility retail investors may face when tracking energy trade dependencies.
The takeaway
The deepening energy partnership between Canada and Japan highlights a global trend of countries prioritizing supply chain predictability over historical trade patterns. Diversifying energy sources serves as a hedge against geopolitical instability for nations like Japan.
Further reading
Explore more analysis regarding global economic partnerships in the International Trade section.
Source note: This article includes information reported by The Globe and Mail.
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