Canada approves major natural gas pipeline expansion

Canada on Friday approved a multi-billion-dollar expansion of a west coast natural gas pipeline, which it says will help boost exports to Asia, a key part of Ottawa’s effort to curb reliance on the United States.

Prime Minister Mark Carney has described Canada as “an energy superpower” and said selling more oil and gas to Asia can help offset losses from fraying trade ties with the United States.

The project “supports Canada’s trade diversification strategy through enhanced ability to meet natural gas demand from Asian markets,” Canada’s Ministry of Natural Resources said in a statement.

But the pipeline could also ease liquified natural gas sales to the United States, adding another possible Canadian bargaining chip in upcoming negotiations with President Donald Trump on the future of the North American free trade agreement.

Work on the CAN$4 billion ($2.9 billion) expansion of a pipeline system owned by Canadian energy giant Enbridge in British Columbia is set to begin this summer, with a targeted completion date of late 2028.

Those timelines won’t offer immediate support to a global LNG market under heavy strain from the US-Iran war.

But the International Energy Agency on Friday warned of longer-term pressures on LNG supplies from the conflict, which has sent energy prices soaring since Tehran effectively closed the Strait of Hormuz to Gulf tanker traffic.

With global supply chains shaken by the conflict, experts have said Canadian energy products — which do not require transit through the Middle East — could become increasingly attractive in Asian markets.

AFP

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]