Canada's LNG Exports May Soar Amid Iran War Chaos

TC Energy CEO François Poirier thinks that Canada's massive LNG Canada facility is likely to get a second stage due to the global liquefied natural gas supply disruption caused by the Iran war.

The Strait of Hormuz, which connects Asia and Europe, has become a major concern for global energy markets, making direct access to Asian markets more valuable than ever. As a result, Poirier believes that it's more likely that a second stage will be built at LNG Canada, which would double the project's capacity to 28 million metric tons.

Currently, LNG Canada Phase 1 can export 14 million metric tons of LNG when fully ramped up, and Shell and its partners are expected to make a final decision about Stage 2 later this year. If approved, it would require TC Energy to expand its Coastal GasLink pipeline over two or three years of construction, including additional compressor stations.

Poirier also thinks that Canada has the potential to become the largest exporter of LNG to Asia and believes there is enough demand to support both LNG Canada Phase 2 and the proposed Ksi Lisims LNG project. This would make Canada a significant player in the global energy market.