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Iran War Boosts Canada LNG to Asia Prospects
24 Mar
Summary
- Global LNG supply disruptions due to the Iran war favor Canadian exports to Asia.
- TC Energy predicts a second phase of Canada's LNG facility is more likely.
- A decision on doubling LNG Canada's capacity is expected later this year.
The disruption to global liquefied natural gas (LNG) supplies, exacerbated by the Iran war, is increasing the likelihood of a second stage for Canada's substantial LNG Canada facility. TC Energy CEO François Poirier stated in Houston that the conflict underscores the importance of LNG exports to Asia that do not transit the Strait of Hormuz.
Poirier noted that while market watchers previously discussed a potential global LNG surplus, current geopolitical events have shifted this perspective. He is not privy to decisions regarding a potential second phase of LNG Canada, but his company's Coastal GasLink pipeline is being prepared for such an eventuality.
LNG Canada's initial phase is set to export 14 million metric tons of LNG. Shell and its partners are expected to make a final decision on Stage 2 later this year, which would double the project's export capacity. Poirier believes Canada should aim to be the largest LNG exporter to Asia, supporting both LNG Canada Phase 2 and the proposed Ksi Lisims LNG project.
