CALGARY — Francois Poirier, CEO of TC Energy, has said the global disruption to liquefied natural gas (LNG) supplies due to the US-Israel-Iran conflict has increased the likelihood that the second phase of LNG Canada will move forward.Speaking at the CERAWeek by S&P Global Energy Conference on Monday, Poirier said the instability has shifted market dynamics and highlighted the value of Canadian LNG exports to the Asian market.“While just weeks ago there was talk of a global LNG glut, the situation has changed,” he said, adding that Canadian exports from the West Coast offer a more direct and secure path to Asia in light of concerns over Strait of Hormuz supply routes.Reuters reports that while TC Energy is not directly involved in the final investment decision for a second phase of the LNG Canada facility located in Kitimat, BC, Poirier admits the company has been asked by project proponents to anticipate expansion.“What they have pushed us to do, however, is be ready,” Poirier said.TC Energy operates the Coastal GasLink pipeline, which supplies natural gas to LNG Canada — which is the first major North American LNG export facility with direct access to the Pacific.Once ramped up, the first phase of LNG Canada is expected to annually export roughly 14 million tonnes of LNG..If a second phase is approved later this year, it would double the current capacity.Poirier said his company would expand the Coastal GasLink system over a period of two to three years to accommodate the increased flow, and said that, beyond that project, Canada has a major opportunity to expand its role in global LNG markets.Poirier said TC Energy would expand the Coastal GasLink system over two to three years to accommodate increased volumes, including the addition of new compressor stations.Beyond LNG Canada, Poirier argued that Canada has an opportunity to significantly expand its role in global LNG markets.“Canada should aspire to being the largest exporter of LNG to Asia,” he said, adding that he sees sufficient long-term demand to support both LNG Canada Phase 2 and the proposed Ksi Lisims LNG project in northern BC.That LNG project is expected to have a capacity of 12 million tonnes annually, making it the country’s second-largest proposed export facility..Asian demand for LNG Canada shipments ramp ups as Strait of Hormuz disruption hits global markets.In a separate interview with Politico, Poirier said the current geopolitical situation is also accelerating discussions around energy infrastructure among policymakers and regulators, “but more so with customers who are looking to accelerate conversations around sanctioning new infrastructure.”“There’s been a significant interruption in global supply, and the sense of urgency around developing more infrastructure is very high right now,” he said.However, he cautioned that new LNG projects cannot address immediate shortages due to lengthy permitting and construction timelines, but underscored the importance of reliable and affordable energy supplies, particularly for countries heavily dependent on imports.Poirier contrasted North America’s energy surplus with countries such as Japan, which produces only a fraction of its energy needs.“Japan produces 10% of its energy needs, so it’s difficult for North Americans to really appreciate what energy dependence feels like,” he said.“There’s a real opportunity here for us in North America to help with that when it comes to LNG, and a path to Asia. The West Coast of North America looks very interesting right now.”
