Carney in Vancouver for energy deal as industry watchers hope for expansion of LNG Canada

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeEnergyOil & GasCarney in Vancouver for energy deal as industry watchers hope for expansion of LNG CanadaA green light would clear the way for two more giant processing units that would bring the terminal's capacity to 28 million tonnes a yearFlags fly outside the LNG Canada office in Kitimat, British Columbia. Carney travels to the province today to mark an “historic” investment in Canada’s energy sector. Photo by Ben Nelms/BloombergPrime Minister Mark Carney is in Vancouver on Tuesday to mark an “historic” investment in Canada’s energy sector amid widespread speculation of a potential massive expansion at an export terminal for liquefied natural gas.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Shell PLC-led consortium behind LNG Canada has been dropping clues that it may be prepared to green-light a second phase, which would double capacity at its Kitimat, B.C. shipping terminal.This advertisement has not loaded yet, but your article continues below.Perhaps the most significant sign was Shell’s $22-billion takeover of Calgary-based ARC Resources Ltd., a major natural gas producer that could help supply an expanded shipping terminal with fuel.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againIn July, LNG Canada said it had given five B.C. First Nations the option to invest up to $1 billion to own a massive LNG storage tank that would be critical to the expansion, but only if the joint venture partners agreed to bankroll the project.Carney’s itinerary for Tuesday says he will be in Vancouver to “highlight an historic investment in Canada’s energy industries.”Tristan Goodman, president of the Explorers and Producers Association of Canada, said he hoped the prime minister would highlight a positive final investment decision for LNG Canada’s mammoth expansion.“If that is occurring, that is a tremendous, significant investment. I think it is fair to say it is historic, and it’s exceptionally positive for natural gas producers, but also in general for the country,” Goodman said in an interview.“It really shows that we are moving forward with LNG development. We’ve had a number of starts and stops, and that has been frustrating. And I think it’s time that Canada really demonstrate we can build major projects again.”This advertisement has not loaded yet, but your article continues below.A green light would clear the way for two more giant processing units that would add 14 million tonnes of annual capacity, bringing the terminal’s total to roughly 28 million tonnes a year.To put the numbers in perspective, an expanded LNG Canada would move the equivalent of a third of the volumes that would normally ship through the Strait of Hormuz before the Iran war, according to Shannon Joseph, chair of the group Energy for a Secure Future.An approval would also be a political achievement for Carney, who campaigned in 2025 on turning Canada into a “global energy superpower” and has made fast-tracked resource development central to his economic agenda.LNG Canada’s expansion was one of the first projects Carney referred to the Major Projects Office, set up to prioritize infrastructure that could help the country diversify trade away from the United States.At his Canada Investment Summit in Toronto this month, Carney set a goal of attracting $1 trillion in investment over five years and listed doubling Canadian LNG exports to 50 million tonnes a year by 2030 as a target.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Phase two alone would account for 14 million tonnes of that growth.An approval would send a positive signal to foreign investors that Canada is an attractive country for business at a time of geopolitical turmoil, Joseph said. Carney has been trying to raise the country’s profile with overseas energy buyers that are looking for reliable suppliers with no risk of war.Joseph said for Canada, the stakes are high.“If we did not manage to get (a final investment decision) eventually for LNG Canada phase two, I didn’t see how we’d get it for anything else,” she said, noting the project has necessary permits, support from First Nations and customers lined up.In May, the federal government, British Columbia and LNG Canada agreed to work together on closing the final items needed for a 2026 decision.That agreement came after the partners approved hundreds of millions of dollars in added funding to finish critical work.This advertisement has not loaded yet, but your article continues below.For Alberta, the bigger prize may be the price its producers could fetch for natural gas. They have been dealing with stubbornly low prices, largely because production has outstripped the industry’s capacity to move the gas to markets.Producers and other industry watchers are betting that a second export outlet will eventually improve prices.The market backdrop has turned in the project’s favour. Asian buyers have been putting more weight on supply security amid conflict in the Middle East, Red Sea shipping disruptions and uncertainty over the Strait of Hormuz.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.