Alberta Pipeline Proposal Requires British Columbia Approval, Says Canada's Energy Minister

Canada's energy minister, Tim Hodgson, says Alberta needs British Columbia's approval for a proposed pipeline project. Alberta Premier Danielle Smith aims to build a new pipeline, which faces opposition from British Columbia Premier David Eby. The project is contingent on reversing a ban on oil-tanker traffic along the northern British Columbia coast. A poll indicates that nearly 60% of Canadians support the pipeline idea, with 56% of British Columbians backing the project.

LNG Canada, the country's largest liquefied natural gas (LNG) export terminal, is set to commence operations for its second processing unit in Kitimat, British Columbia. This expansion will significantly increase the facility's capacity and contribute to Canada's growing LNG export market.

The LNG Canada export terminal, located in Kitimat, began shipping LNG to Asia in June 2025. The facility, which is led by Shell PLC, initially featured two processing units, or "trains," each capable of handling seven million tonnes of LNG exports annually. The second train is now being prepared to start operations, following a notice to Kitimat residents about planned flaring activities from October 7 to November 10 LNG Canada prepares to start second processing unit in B.C.^[1].

The flaring process, a provincially regulated safety measure, ensures the controlled combustion of natural gas during specific operational phases. The notice cautions local residents about increased noise and black smoke. RBC Capital Markets analyst Michael Harvey expects the startup phase for Train 2 to support increased sailings in the future, with the facility requiring roughly 15 export tanker vessels per month at full capacity LNG Canada prepares to start second processing unit in B.C.^[1].

As of October 5, the 15th cargo has departed the LNG Canada facility, and another shipment is expected to leave in the coming days. Each train is designed to handle seven million tonnes of LNG exports a year, doubling the plant's total capacity to 28 million tonnes annually with the Phase 2 expansion LNG Canada prepares to start second processing unit in B.C.^[1].

The project's co-owners, including Shell, Petronas, PetroChina, Mitsubishi Corp., and Kogas, are expected to make a final investment decision in 2026 regarding the Phase 2 expansion. Shell, the largest stakeholder, has a 40% interest in the project LNG Canada prepares to start second processing unit in B.C.^[1].

The expansion comes amidst ongoing discussions about Canada's energy infrastructure. Alberta Premier Danielle Smith aims to build a new pipeline, contingent on reversing a ban on oil-tanker traffic along the northern British Columbia coast. The project faces opposition from British Columbia Premier David Eby, but a recent poll indicates that nearly 60% of Canadians support the pipeline idea, with 56% of British Columbians backing the project LNG Canada prepares to start second processing unit in B.C.^[1].

Environmental groups and climate activists maintain that companies should not invest more in fossil fuels like LNG, advocating instead for renewable energy solutions. However, the LNG industry remains a significant contributor to Canada's energy sector, and the expansion of LNG Canada is a key indicator of the country's commitment to LNG exports.