Canada’s LNG Ambitions Grow as British Columbia Warms to Gas Exports
The British Columbia government is eager to see the LNG Canada project expand to Phase 2 as soon as possible, in a marked departure from earlier political sentiment towards hydrocarbons that were strongly negative.
LNG Canada is due to make the final investment decision on Phase 2 of the same-name facility in Kitimat soon, and British Columbia Premier David Eby this week said he hoped the decision comes by the end of this year, describing it as the “largest private sector investment in Canadian history,” as quoted by CBC.
Backed by Shell, Petronas, PetroChina, Mitsubishi, and Kogas, LNG Canada has redirected a portion of Canadian gas exports—previously flowing almost entirely to the U.S.—toward global markets. The price tag of the project is $40 billion. Construction of the first train took seven years. The first cargo set off from Kitimat in June last year.
Since then, the terminal has been ramping up shipments, with the bulk going to South Korea. Although the previous Canadian federal government had claimed there was no business case for LNG exports, the LNG Canada partners apparently begged to differ—and now so does the provincial government of British Columbia.
Indeed, the B.C. government is so happy with LNG Canada that it announced an “enhanced cooperation agreement” with the company this week. The final investment decision on Phase 2 depends on the agreement of all partners.
Meanwhile, political enthusiasm bout Canadian liquefied gas is not being shared by environmentalists, who are calling for a reversal of the industry’s growth, enforced by the government. Most recently, a group called the Canadian Association of Physicians for the Environment claimed LNG Canada was flaring more gas than it was allowed to, releasing “health-harming chemicals, including black carbon and benzene, a potent carcinogen for which there is no safe exposure level.”
The chief executive of LNG Canada responded by saying that higher flaring rates were normal during start-up and that the company was “monitoring, very carefully, the emissions levels in the community.”
By Irina Slav for Oilprice.com
The British Columbia government is eager to see the LNG Canada project expand to Phase 2 as soon as possible, in a marked departure from earlier political sentiment towards hydrocarbons that were strongly negative.
LNG Canada is due to make the final investment decision on Phase 2 of the same-name facility in Kitimat soon, and British Columbia Premier David Eby this week said he hoped the decision comes by the end of this year, describing it as the “largest private sector investment in Canadian history,” as quoted by CBC.
Backed by Shell, Petronas, PetroChina, Mitsubishi, and Kogas, LNG Canada has redirected a portion of Canadian gas exports—previously flowing almost entirely to the U.S.—toward global markets. The price tag of the project is $40 billion. Construction of the first train took seven years. The first cargo set off from Kitimat in June last year.
Since then, the terminal has been ramping up shipments, with the bulk going to South Korea. Although the previous Canadian federal government had claimed there was no business case for LNG exports, the LNG Canada partners apparently begged to differ—and now so does the provincial government of British Columbia.
Indeed, the B.C. government is so happy with LNG Canada that it announced an “enhanced cooperation agreement” with the company this week. The final investment decision on Phase 2 depends on the agreement of all partners.
Meanwhile, political enthusiasm bout Canadian liquefied gas is not being shared by environmentalists, who are calling for a reversal of the industry’s growth, enforced by the government. Most recently, a group called the Canadian Association of Physicians for the Environment claimed LNG Canada was flaring more gas than it was allowed to, releasing “health-harming chemicals, including black carbon and benzene, a potent carcinogen for which there is no safe exposure level.”
The chief executive of LNG Canada responded by saying that higher flaring rates were normal during start-up and that the company was “monitoring, very carefully, the emissions levels in the community.”
By Irina Slav for Oilprice.com
Australia Rules Out LNG Export Curbs as East Coast Gas Supply Fears Ease
Australia will not be imposing controls on exports of natural gas during the third quarter of 2026, as industry and experts have assured the government that the most vulnerable east coast will not see any supply shortages between the winter months of July and September.
“Following confirmation from industry and experts that Australia’s east coast market has sufficient gas supplies, Minister for Resources and Northern Australia Madeleine King will not implement gas market export controls,” the government said on Friday.
Early last month, Australia’s government said it intended to consider using emergency powers to protect the domestic natural gas supply in case of a shortfall on its east coast in the third quarter of 2026.
Minister King last month gave notice of her intention to consider using powers under the Australian Domestic Gas Security Mechanism (ADGSM) to protect Australian energy supplies in the event of a possible east coast domestic gas shortfall in the third quarter of 2026.
However, following a month of consultations with industry and experts, Australia has now decided no gas export controls would be necessary.
“Minister King said she had now received assurances from exporters that there will be more than enough gas to meet the demand of Australians,” the government said today.
Australia is also implementing, as of July 1, 2027, the so-called gas reservation scheme that requires gas exporters to supply a proportion of their total production to the Australian market, equivalent to 20% of exports.
“The reservation will build Australia’s energy sovereignty, grow gas reserves and ensure more Australian gas stays in Australia,” Minister King said.
Australia’s decision not to implement gas export controls in the third quarter is good news for the global LNG market, which suddenly found itself in a major shortage after the Iran war crippled the Middle East’s LNG exports, with tight markets now expected to last much longer than previously thought.
By Tsvetana Paraskova for Oilprice.com
Australia will not be imposing controls on exports of natural gas during the third quarter of 2026, as industry and experts have assured the government that the most vulnerable east coast will not see any supply shortages between the winter months of July and September.
“Following confirmation from industry and experts that Australia’s east coast market has sufficient gas supplies, Minister for Resources and Northern Australia Madeleine King will not implement gas market export controls,” the government said on Friday.
Early last month, Australia’s government said it intended to consider using emergency powers to protect the domestic natural gas supply in case of a shortfall on its east coast in the third quarter of 2026.
Minister King last month gave notice of her intention to consider using powers under the Australian Domestic Gas Security Mechanism (ADGSM) to protect Australian energy supplies in the event of a possible east coast domestic gas shortfall in the third quarter of 2026.
However, following a month of consultations with industry and experts, Australia has now decided no gas export controls would be necessary.
“Minister King said she had now received assurances from exporters that there will be more than enough gas to meet the demand of Australians,” the government said today.
Australia is also implementing, as of July 1, 2027, the so-called gas reservation scheme that requires gas exporters to supply a proportion of their total production to the Australian market, equivalent to 20% of exports.
“The reservation will build Australia’s energy sovereignty, grow gas reserves and ensure more Australian gas stays in Australia,” Minister King said.
Australia’s decision not to implement gas export controls in the third quarter is good news for the global LNG market, which suddenly found itself in a major shortage after the Iran war crippled the Middle East’s LNG exports, with tight markets now expected to last much longer than previously thought.
By Tsvetana Paraskova for Oilprice.com
Commonwealth LNG Approves $13 Billion Louisiana Export Project
Developers of the Commonwealth LNG project have taken the final investment decision to build the $13-billion U.S. export plant in Louisiana, underpinned by investments from Kimmeridge, Abu Dhabi-based Mubadala Energy, and Canada Pension Plan Investment Board, the UAE energy investor said on Friday.
The Commonwealth LNG facility in Cameron Parish, Louisiana, will have an annual capacity of 9.5 million tons of liquefied gas and is expected to become operational in 2030.
Phase 1 development of the export facility on the west bank of the Calcasieu Ship Channel is expected to generate more than $3 billion in annual export revenue when operations commence in 2030, according to the proponents of the project.
The FID includes the successful closing of $9.75 billion in project financing for the construction of the export project, marks the start of full construction, and advances one of the most cost-competitive and efficient LNG projects in the United States, Mubadala Energy said.
The transaction attracted strong interest from both equity and debt investors, resulting in total commitments of $21.25 billion.
Kimmeridge, Mubadala Energy, and CPP Investments provide new financing for Commonwealth LNG and continue as equity investors in Caturus. Mubadala Energy, which already holds a 24.1% stake in the Caturus platform, comprised of Commonwealth LNG and Caturus’ upstream operations, is also an equity participant in the project’s financing.
“Global gas demand is unquestionably accelerating, and Caturus is positioned to be a differentiated leader across the value chain from upstream production to LNG export,” Caturus CEO David Lawler said.
The final investment decision for the new U.S. project comes as the Middle East conflict upended global LNG supply and demand balances. Contrary to earlier forecasts, the market is now expected to be tight in 2026 and 2027, amid curtailed output from Qatar and the UAE, and Qatar announcing it could need up to five years to repair the damage to its key Ras Laffan LNG complex from Iranian missile attacks in March.
By Tsvetana Paraskova for Oilprice.com
Developers of the Commonwealth LNG project have taken the final investment decision to build the $13-billion U.S. export plant in Louisiana, underpinned by investments from Kimmeridge, Abu Dhabi-based Mubadala Energy, and Canada Pension Plan Investment Board, the UAE energy investor said on Friday.
The Commonwealth LNG facility in Cameron Parish, Louisiana, will have an annual capacity of 9.5 million tons of liquefied gas and is expected to become operational in 2030.
Phase 1 development of the export facility on the west bank of the Calcasieu Ship Channel is expected to generate more than $3 billion in annual export revenue when operations commence in 2030, according to the proponents of the project.
The FID includes the successful closing of $9.75 billion in project financing for the construction of the export project, marks the start of full construction, and advances one of the most cost-competitive and efficient LNG projects in the United States, Mubadala Energy said.
The transaction attracted strong interest from both equity and debt investors, resulting in total commitments of $21.25 billion.
Kimmeridge, Mubadala Energy, and CPP Investments provide new financing for Commonwealth LNG and continue as equity investors in Caturus. Mubadala Energy, which already holds a 24.1% stake in the Caturus platform, comprised of Commonwealth LNG and Caturus’ upstream operations, is also an equity participant in the project’s financing.
“Global gas demand is unquestionably accelerating, and Caturus is positioned to be a differentiated leader across the value chain from upstream production to LNG export,” Caturus CEO David Lawler said.
The final investment decision for the new U.S. project comes as the Middle East conflict upended global LNG supply and demand balances. Contrary to earlier forecasts, the market is now expected to be tight in 2026 and 2027, amid curtailed output from Qatar and the UAE, and Qatar announcing it could need up to five years to repair the damage to its key Ras Laffan LNG complex from Iranian missile attacks in March.
By Tsvetana Paraskova for Oilprice.com
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