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CEO of TC Energy says that the Iran war will make it more likely for a second phase of LNG Canada to be built.

TC Energy CEO Francois Poirier said that the disruption?to global liquefied gas?supplies caused?by the?Iran 'war?will make it more likely for a second phase of Canada's massive LNG Canada to be built. He made this prediction in Houston, Texas on Monday. While only a few weeks ago market watchers were predicting a glut of LNG worldwide, the 'Iran war' has highlighted the importance of LNG which can be delivered directly to Asia without having to transit the Strait of Hormuz. TC Energy CEO Francois Poirier stated. TC's Coastal GasLink pipe supplies natural?gas for the Shell-led LNG Canada plant located near Kitimat in British Columbia. The facility is expected to start production in 2025, making it the?first major LNG installation in North America to have direct access to Pacific. ?Poirier stated that he was not privy to Shell's or its partners decision-making processes on a possible second phase.

Poirier stated in Houston, at the CERAWeek conference by S&P Global, that "what they have pushed to do is be ready." When fully ramped-up, LNG Canada's phase 1 will be capable of exporting 14 million metric tonnes?of LNG. Shell and its partners will likely make a decision on Stage 2 by the end of this year. The project's capacity would be doubled if the Stage 2 was approved.

He said that Canada should aim to be the largest LNG exporter to Asia. He also believes there's enough demand for both LNG -Canada Phase 2 as well as the proposed Ksi Lisims LNG Project, which would be situated further north along Canada's coast. The project is expected to have a capacity of 12 million metric tonnes, making it Canada's largest LNG export facility. TC Energy will expand its Coastal GasLink pipe over a period of two to three years, and add additional compressor stations for the enlarged LNG facility if LNG Canada Phase '2' is approved.

(source: Reuters)