LNG Canada Expansion Approved Amidst Global Energy Demand

The Canadian government has given its approval for LNG Canada to double output from its terminal in British Columbia, amidst rising global demand for energy. This decision comes as a response to recent disruptions in natural gas shipments from major producers such as Qatar and Russia.

Prime Minister Mark Carney stated that the decision-making process was expedited due to the project's importance and the need for reliable sources of energy. The project, which has already begun shipping liquefied natural gas last year, is a joint venture between Shell, PetroChina, Petronas, Mitsubishi Corp., and KOGAS.

Lance Mortlock, managing partner at EY Canada, highlighted that the LNG Canada partners had to weigh several factors before making a final decision. These included determining whether customer demand in Asia was sufficient, which they deemed 'a resounding yes', as well as having plentiful gas reserves to feed the plant for decades.

However, not all experts are in favor of this expansion. Richard Brooks, climate finance director at Stand.earth, criticized the decision, stating that it is like 'betting on a concrete canoe at a sailing regatta' due to the growing global demand destruction of gas and the need for clean energy infrastructure.