CERAWEEK-Iran war makes second phase of LNG Canada more likely, TC Energy CEO says

By Amanda Stephenson

HOUSTON, March 23 (Reuters) - The disruption to global liquefied natural gas supplies caused by the Iran war makes it more likely that a second stage of Canada's massive LNG Canada facility will be built, the CEO of Canadian pipeline company TC Energy TRP.TO predicted in Houston on Monday.

While just weeks ago, market-watchers were talking about a potential glut of LNG globally, the Iran war has underscored the value of LNG that can reach Asia directly without transiting the Strait of Hormuz, TC Energy CEO François Poirier said.

TC's Coastal GasLink pipeline supplies natural gas to the Shell-led LNG Canada facility located near Kitimat, British Columbia, which started production in June 2025 as the first major LNG facility in North America with direct access to the Pacific. Poirier said he is not privy to Shell SHEL.L or its partners' decision-making process on a potential second phase.

"What they have pushed us to do, however, is be ready," Poirier said in an interview in Houston at the CERAWeek by S&P Global conference.

LNG Canada's Phase 1 will be able to export 14 million metric tons of LNG when fully ramped up. Shell and its partners are expected to make a final decision about Stage 2 later this year. If approved, it would double the project's capacity.

"Canada should aspire to being the largest exporter of LNG to Asia," he said, adding he believes there is enough demand to support both LNG Canada Phase 2 and the proposed Ksi Lisims LNG project that would be located further north along the coast. That project's proposed capacity is 12 million metric tons, which would make it Canada's second-largest LNG export facility.

If LNG Canada Phase 2 gets the go-ahead, TC Energy would expand its Coastal GasLink pipeline over two or three years of construction, including additional compressor stations to serve the enlarged facility, Poirier said.