Prime Minister Mark Carney has placed the planned expansion of LNG Canada on his government’s list of priority infrastructure projects, a move aimed at expediting approvals and positioning Canada as a global LNG powerhouse.
Canadian Prime Minister Mark Carney. Image: Official photo.
The project, led by Shell Plc alongside partners Petronas, PetroChina, Mitsubishi and Korea Gas Corp., would double LNG Canada’s capacity from 14 million to 28 million metric tons per year. That scale would make it the world’s second-largest liquefied natural gas facility. Phase one began exports earlier this year following a $40 billion final investment decision in 2018.
Carney said the expansion underscores Canada’s bid to diversify energy exports beyond the U.S., strengthen global LNG supply chains, and create “tens of thousands” of high-paying jobs. He stressed that federal incentives under discussion would be modest compared with overall project costs, with private-sector investment providing the bulk of financing.
Despite strong government support, questions remain over how the expanded facility will align with emissions targets set by Canada and British Columbia. The LNG Canada consortium holds a 40-year export license and has already secured key permits and environmental approvals, including a provincial environmental assessment certificate.
Carney’s priority project list also includes critical minerals developments in Ontario’s Ring of Fire and new data infrastructure. Still, the LNG Canada expansion stands out as central to Ottawa’s strategy of boosting construction, countering U.S. tariffs, and cementing Canada’s role as a major LNG exporter.
Lead image courtesy of Fluor.
