Liquefied natural gas (LNG) presents an opportunity for transitioning the global economy to a less-carbon intensive one. LNG enables the transport of a clean-burning energy alternative to coal and oil from supply to demand markets. The entrance of Western Canada to the global LNG market has the potential to bolster the national economy while improving the environmental performance of the global economy. The development of western Canadian LNG requires diligent management of methane emission concerns to ensure climate change commitments are met. This study investigates the economic costs and benefits of methane emissions reduction opportunities in Western Canada and how enforcing these through regulation may affect the region’s competitiveness in the global LNG market. Porter’s Hypothesis is used as a framework for analysing the potential impacts of increasingly stringent methane emission regulations on the business performance and innovation of the Western Canadian LNG industry and recommendations are made accordingly.