Imports from Canada surge as energy cooperation deepens

A sharp rise in China's imports of liquefied petroleum gas, or LPG, from British Columbia is reshaping energy trade flows across the Pacific and creating new momentum for China-Canada economic cooperation, experts said.

In February, China imported more than C$113.5 million ($82.95 million) worth of LPG through British Columbia — Canada's westernmost province on the Pacific Ocean — accounting for nearly 75 percent of the province's total LPG exports, according to Statistics Canada.

China has rapidly emerged as the top destination for the province's LPG exports, surpassing Japan and South Korea. Jiang Wenran, founding director of the China Institute at the University of Alberta and president of the Canada-China Energy and Environment Forum, said the increase was driven by a combination of geopolitical tensions, supply chain concerns and Canada's geographic advantage.

"The surge is driven by a 'perfect storm' of factors: US-China trade tensions making American propane (a type of LPG) costly due to tariffs, instability in the Middle East, and B.C.'s geographical advantage of offering a 10-day shipping route to Asia compared to 20 days from the US Gulf Coast," he said.

He described the trend as "a clear sign of practical thawing in Canada-China relations".

"As seen in the recent shift in tone from both Beijing and Ottawa, when political relations become too frosty, it hurts the bottom line on both sides," Jiang told China Daily. "Economics is acting as the ultimate icebreaker here."

China has emphasized energy supply diversification in its 15th Five-Year Plan (2026-30), while Canada has sought to expand energy exports beyond the US market.

Jiang said the two priorities are highly complementary. "They fit together like lock and key," he said.

Luo Weidong, consul general of China in Toronto, described energy cooperation as a traditional pillar of China-Canada economic ties and a key area for future growth under China's 15th Five-Year Plan (2026-30).

"Energy has long been a traditional strength in China-Canada cooperation and accounts for the largest share of bilateral trade," Luo said at a business forum hosted by the Canada China Business Council in Toronto last week.

He said China's new five-year development blueprint places greater emphasis on building the country into a "strong energy country" through cleaner, more efficient use of fossil fuels, alongside the expansion of renewable and low-carbon energy sources.

Luo said Canada's resource base positions it well to deepen cooperation with China in both conventional and clean energy sectors. "Canada is richly endowed with both conventional and clean energy resources," he said.