Canada's National Energy Board gave approval for a 25-year application to send about 320 million cubic feet of liquefied natural gas per day from a port to be located either at Kitimat or Prince Rupert, British Columbia.
NEB said the approval is in response to the glut of natural gas in North America.
"One of the major impacts of this increase is lower demand for Canadian gas in traditional gas markets in the United States and eastern Canada," it said in a statement Wednesday. "As a result, the Canadian gas industry is seeking to access overseas gas markets."
Canadian Prime Minister Stephen Harper has sought to add a layer of diversity to an energy export economy that depends on the United States. Asian markets are among the world's largest consumers of LNG and Harper recently signed a free-trade deal with South Korea.
NEB said the terminal for LNG hasn't been constructed yet and needs further regulatory approval before it can begin.