Canada Expanding Energy Trade Overseas

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canada and Italy have agreed to cooperate on a range of energy-related programs. Days before, the same was reached with China as Canada tries to expand trade outside North America.

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Carney's Trade Strategy Paying Off

Building on efforts to prioritize nation-building projects and expand trade outside of North America, Canada agreed to cooperate with Italy on everything from critical minerals to liquefied natural gas (LNG).

Monitoring trade developments since Mark Carney's inauguration as prime minister in March 2025, Industrial Info Resources finds two of the largest grassroot projects in Canada are in the Atlantic. The Bay du Nord project and West White Rose combine for US$15.2 billion, supporting Canadian efforts to establish itself as an energy superpower.

On Monday, Energy Minister Tim Hodgson met with his Italian counterpart, Gilberto Pichetto Fratin, to discuss bilateral energy opportunities.

"The ministers reviewed progress and reaffirmed their commitment to sustained collaboration and tangible outcomes," a joint statement read.

Both sides agreed to prioritize critical mineral value chains, nuclear energy, LNG and general energy security. Many of the areas of shared interest were included in the first tranche of projects referred to Prime Minister Carney's so-called Major Projects Office, developed to clear the red tape for nation-building projects.

In March, the provincial government of British Columbia approved C$31 million (US$21.8 billion) in funding for upgrades to the electric power system feeding the Red Chris mine in British Columbia, a copper and gold mine in the process of expansion. Carney's administration said expansion would increase production of copper, designated as a critical mineral, by 15% and add about 1,500 workers to the payroll.

Elsewhere, the first of the four small modular reactors (SMRs) is already under construction at the Darlington site in Bowmanville in southern Ontario. The SMR at Darlington will be online by 2030, when it would become the first facility of its kind in the G7. Once up and running, it would be able to provide enough power to meet the demands of 1.2 million households, greater than the entire population of Toronto.

And perhaps the crown jewel is the LNG Canada project in British Columbia, the only facility of its kind in North America that can deliver LNG from the Pacific Coast. That would cater more to the Asian economies than European partners such as Italy.

British Columbia Reaches out to China

"Because unjustified tariffs from the U.S. and gas price increases from the war in Iran are hurting B.C. businesses and families, we are prioritizing diverse relationships with multiple trading partners to support good jobs and protect people in B.C.," British Columbia Premier David Eby said early this week. "China is the world's second-largest economy and is our second-largest export market for B.C. goods and services.

Eby is in Beijing through July 3 to drum up new opportunities for British Columbia. The province is the second-largest natural gas producer in Canada and the 12th largest in the world. China, meanwhile, is British Columbia's second-largest export market outside the United States.

Addressing members of Parliament earlier this week, Carney suggested his trade initiatives have paid off. Since coming to office, Carney said Canada has secured more than 20 economic partnerships across five continents.

"Our goal is to transform the Canadian economy into the strongest in the G7," he said. "It's a big task, but the early signs are encouraging."

Canada had been in a technical recession following stagnant growth in the first quarter. Data from Tuesday show GDP in April grew 0.5% month-on-month for the largest expansion in nine months.

"The mining, quarrying, and oil and gas extraction sector rose 2.9% in April, the largest monthly growth rate since February 2024, more than offsetting March's 1.4% contraction," a statement from Statistics Canada read.

By the Numbers

• 20+ trade deals across five continents for Canada
• 1.2 million households to be powered by G7s first SMR

Key Takeaways

• Prime Minister Mark Carney's trade diversification strategy is working
• Canada aims to be the largest economy in the G7 and a global energy superpower

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).