Japan Sought Increased Energy Imports From Canada
Energy firms should monitor shifts in trade volumes and supply chain security priorities between the two nations.
Updated on Sept. 24, 2026 in International Trade
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Japan has signaled its intent to expand energy imports from Canada, seeking to bolster economic security through diversified supply routes. This development directly impacts energy producers and logistics operators managing trans-Pacific commodities.
Why it matters
Japan's focus on diversifying its energy mix and avoiding reliance on specific transit corridors like the Strait of Hormuz is driving new investment interest in Canadian assets. Businesses must weigh these security requirements against Canada's ongoing trade dependencies on the U.S. market.
AltaGas Ltd. saw its share of Japanese propane imports drop to 11% in 2025, down from 24% in 2024. Meanwhile, Mitsubishi Corp. maintains a 15% stake in the LNG Canada project, which began shipping to Asia in June 2025.
The players
Mitsubishi Corp.
A Japanese multinational conglomerate with diverse interests including a 15% stake in the LNG Canada project.
AltaGas Ltd.
A Canadian energy infrastructure company that serves as a major propane exporter to the Japanese market.
LNG Canada
A large-scale liquefied natural gas export terminal in British Columbia that began operations in 2025.
The details
Japan is prioritizing secure energy shipping routes that circumvent the Strait of Hormuz to reduce geopolitical exposure. For Canadian exporters, this shift necessitates balancing increased export capacity with the requirement that auto-sector and energy investments maintain preferential access to the United States. Future expansions, such as a potential Phase 2 for LNG Canada, remain a key focal point for Japanese financial institutions.
Timeline
2024: AltaGas Ltd. supplied 24 per cent of Japan's imported propane.
June 2025: LNG Canada commenced shipping liquefied natural gas to Asia.
2025: AltaGas Ltd. supplied 11 per cent of Japan's imported propane.
September 2026: Japanese financial institutions participated in an investment summit in Toronto.
Market Landscape
This move toward closer energy ties follows Canada's summer 2026 entry as an observer into the Global Combat Air Programme. It signals a broader strategic alignment that extends the bilateral economic relationship beyond traditional energy and auto-sector precedents.
Operators in the energy and logistics sectors should track Japanese investment trends in Canadian infrastructure as a proxy for regional supply security strategies. Review procurement contracts and shipping timelines for any emerging shifts caused by Japan’s focus on non-Hormuz transit routes.
The takeaway
Japan is actively reconfiguring its energy supply chain to favor secure, non-traditional routes through Canadian partnerships. Monitor upcoming investment commitments from Japanese financial institutions to gauge the pace of potential expansions like the LNG Canada Phase 2.
Further reading
For broader trends in cross-border supply chains and commodities, see International Trade.
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