Beyond the Price of Oil
How important is Liquefied Natural Gas?
In a recent appearance on BNN, Kai Lam explained some opportunities in the Canadian energy sector
For many, following Canada’s energy sector is limited to monitoring, and reacting to, the international price of oil. But the sector is actually multilayered and presents investment opportunities that are independent of that singular price. Liquefied Natural Gas is an increasingly important commodity, one which also heavily impacts infrastructure spending.
In a recent BNN Bloomberg interview, JCIC Chief Investment Officer Kai Lam discussed the decision to proceed with Phase 2 of LNG Canada and what it could mean for Canadian energy companies, infrastructure investment and diversification beyond the U.S. market.
The expansion will double LNG Canada’s capacity from approximately 14 million tonnes per year to 28 million tonnes at its Kitimat, B.C. facility. The project is backed by an international consortium led by Shell, alongside Petronas, PetroChina, Mitsubishi and KOGAS. Shell, which is held in JCIC portfolios, has a 40% interest in the project.
For Lam, that international participation is significant. It demonstrates both the scale of foreign investment flowing into Canadian energy infrastructure and the opportunity to connect Canadian natural gas production with customers beyond North America.
The benefits may also extend well beyond LNG producers. Lam noted that TC Energy is expanding the capacity of its Coastal GasLink pipeline to accommodate additional LNG production—part of what he sees as a positive outlook for Canadian infrastructure spending.
Lam also highlighted Shell’s position as a major global LNG supplier, along with its strong free cash flow, share buybacks, dividend yield and valuation relative to peers.
Watch the full BNN Bloomberg interview to hear JCIC’s perspective on the opportunities emerging in Canada’s evolving energy sector.
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