Canada Approves LNG Expansion Amid Global Energy Demand

The Canadian government has given its approval to double the output of the LNG Canada terminal in British Columbia, a move that comes as the world clamors for energy. The expansion will be built on the existing footprint from the first phase of the project, which began shipping liquefied natural gas last year.

Prime Minister Mark Carney praised the speed at which the decision was made, saying 'Twelve months from referral to final investment decision is the pace that this pivotal moment in Canada's history demands.' The federal government's major-projects office handled coordination for the project partners, Shell and PetroChina among them, and provided solutions needed to make the $32 billion investment.

Canada has been looking to diversify its export customer base amid tensions with its trading partner, the United States. LNG shipments from Qatar have been disrupted due to ongoing fighting in the Middle East, while Russia's major LNG player is also facing bombardment from Ukraine.

The expansion will meet rising demand for global LNG, which is expected to grow by around 65 per cent by 2050 as customers seek its versatility and reliability. Lance Mortlock, managing partner at EY Canada, said the partners weighed customer demand, gas reserves, and Canadian public policy before making a final decision.

However, not everyone is celebrating the approval. Richard Brooks, climate finance director at Stand.earth, called it 'betting on a concrete canoe at a sailing regatta' due to the project's environmental concerns and the shift towards clean energy infrastructure.