Canadian LNG faces finance fight
The exodus of international partners and the global gas glut raise doubts about the economic viability of an already challenged sector
Canada was hoping to catch the mid-2020s next global LNG export wave in a big way when a Shell-led consortium announced FID for the first phase of the massive LNG Canada project in October 2018. The nascent Canadian LNG industry plans to produce the “cleanest” gas in the world, given the country’s abundant and cheap hydropower and world-leading regulatory and corporate efforts to mitigate methane emissions. But this may not be enough to attract investors. Proposed LNG projects in Canada tend to have relatively high capital and transportation costs. The regulatory regime is also costly and time-consuming to navigate—and will become even more so following legislation passed by the federal go
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
