The consortium reached a final investment decision on Phase 2 on Tuesday, committing CUSD 33 billion to add two liquefaction trains at the Kitimat terminal. The expansion will lift annual production from 14 million tonnes to 28 million tonnes, with commercial operations expected in the early 2030s.

Shell, which operates LNG Canada and holds a 40% stake, said the project would strengthen its integrated gas portfolio and connect Canadian resources with its global LNG trading and customer network. The company expects to receive nearly 6 million tonnes of additional LNG from Phase 2.

The remaining partners are Malaysia’s Petronas, with a 25% stake; PetroChina and Mitsubishi Corporation, each with 15%; and Korea Gas Corporation, with 5%. The project will primarily target Asian markets, where buyers are seeking diversified supplies amid heightened geopolitical and shipping risks.

For Ottawa, the decision is central to a broader effort to reduce Canada’s reliance on the US market and expand trade with Asia and Europe. Carney has set a target for Canada to export nearly 50 million tonnes of LNG annually by 2030 and has described the country as an energy superpower.

LNG Canada Phase 2 is one of the first major projects to be advanced through the government’s Major Projects Office, which was created to accelerate nationally significant infrastructure.

The project was referred to the office in September 2025, and the government has said the process is intended to provide investors with greater certainty while maintaining regulatory standards.

Carney’s government estimates Phase 2 will generate more than 4,000 construction jobs. LNG Canada said nearly USD 5 billion in contracts and procurement had already gone to Indigenous-owned and local businesses across the region.

The Haisla Nation’s traditional territory hosts the project, which includes an Indigenous equity agreement with five First Nations.

The expansion also strengthens the case for upstream investment in western Canada.

The 670-kilometre Coastal GasLink pipeline transports natural gas from the Montney formation in British Columbia and Alberta to Kitimat, British Columbia.

TC Energy is now moving ahead with an expansion of the pipeline, including five new compressor stations, to support the additional LNG capacity.

Shell’s commitment follows its acquisition of ARC Resources, a major Canadian oil and gas producer with extensive Montney assets. The deal, announced in April and completed this year, increased Shell’s exposure to Canadian gas and gives the company resources that can support its LNG business.

LNG Canada’s economics closely align with its Pacific location. Canadian construction costs are higher than those of some US Gulf Coast projects, but the Kitimat terminal is closer to major Asian customers.

Shell has argued that cheap Montney gas and shorter shipping distances help offset higher construction costs.

The timing is also significant.

Shell expects global LNG demand to rise from 422 million tonnes a year in 2025 to nearly 700 million tonnes by 2050, an increase of about 65%.

Asian markets are expected to account for a substantial share of demand as economies expand and seek reliable supplies.

The project could also alter the economics for Canadian gas producers. Western Canada has faced periods of weak natural gas prices partly because production has grown faster than pipeline capacity.

A second LNG outlet on the Pacific coast could provide producers with greater access to international markets and potentially narrow the discount between Canadian gas and global prices, although the effect will depend on supply, demand and infrastructure constraints.

The expansion is controversial.

Environmental groups have raised concerns about the project’s greenhouse gas emissions and the longer-term role of fossil fuel infrastructure. Critics have also questioned whether rising LNG exports are compatible with Canada’s climate objectives.

Ottawa argues that Phase 2 will be among the lower-emissions LNG projects globally, while Shell says LNG can play a role in meeting energy demand and replacing higher-emissions fuels in some markets.

The company says Phase 2 is expected to generate returns above the hurdle rate for its integrated gas business.

For Canada, however, the investment represents more than an expansion of one terminal. It is a test of whether the country can translate its natural-resource base into a larger export platform while attracting private capital, Indigenous participation and infrastructure investment.

With Phase 2 now sanctioned, LNG Canada is set to become one of the world’s largest LNG facilities. The project, according to Carney, is concrete proof that Canada can expand its export capacity beyond its usual trade route with the US.

It provides Shell and its partners with a strategic Pacific gateway for Canadian gas and a long-term position in a growing LNG market.

The post Shell approves USD 23 billion LNG Canada expansion in boost to Mark Carney’s energy push appeared first on International Finance.

The measures, which took effect just after midnight on Tuesday, cover hundreds of US products and impose duties ranging from 15% to 50%, according to Ottawa.

The targeted goods include steel, furniture, clothing, appliances, electronics, agricultural equipment, and other manufactured products.

Ottawa’s countermeasures match, in broad dollar terms, the latest tranche of tariffs imposed by US President Donald Trump on Canadian goods worth USD 20 ‌billion.

The move represents a significant escalation in an 18-month trade dispute between two economies whose supply chains have been deeply integrated for decades.

Canadian Prime Minister Mark Carney has sought to present the tariffs as a targeted response rather than an attempt to sever commercial ties with Washington.

Ottawa has continued to signal that it is willing to negotiate, but Carney has rejected what he considers unacceptable US demands on Canadian industries and trade policy.

However, on Tuesday, there was a shift in Carney’s tone, with the former central banker now urging a further diversification away from Canada’s biggest trading partner while casting doubt on the viability of the US-Mexico-Canada Agreement (USMCA).

“We have everything we need to pivot and prosper. That pivot will come at a cost. There’s always a cost to action, but it doesn’t come close to the cost of standing still,” Carney said on a video posted on YouTube.

The latest confrontation follows the collapse of bilateral negotiations on August 21. Canadian officials said Washington had introduced demands late in the discussions that Ottawa could not accept, including restrictions affecting Canada’s ability to negotiate trade arrangements with other countries and issues involving Canada’s French-language and cultural protections.

Carney has warned that Canada cannot accept an agreement that undermines its economic sovereignty.

The Canadian government is nevertheless attempting to keep the latest retaliation focused. The new tariffs apply to approximately 6% of US exports to Canada, according to the Associated Press, limiting the immediate scope of the measures even as the political confrontation intensifies.

The US and Canada are each heavily dependent on the other. Canada sends roughly 68% of its exports to the United States, while a large share of manufacturing on both sides of the border relies on components crossing the frontier multiple times before a finished product reaches consumers.

That integration means tariffs can quickly become a cost for businesses on both sides rather than simply a penalty imposed on foreign producers.

Canadian importers could face higher prices for US-made goods, while American manufacturers that rely on Canadian customers may find themselves less competitive. Companies could respond by switching suppliers, passing higher costs to consumers, or relocating portions of their production.

The uncertainty is particularly acute in industries such as automotive manufacturing, where North American production networks have been built around decades of relatively frictionless cross-border trade.

Returning the favour, the United States announced a ban on a broad line-up of Canadian alcoholic beverages, motorcycles, and dairy products from import on Tuesday. The dairy ban covers whey protein, invert molasses, cane molasses, and non-alcoholic beer.

Furthermore, various cheese products were added to a list of products subject to a 50% Trump tariff. Some paper, aluminum, wood, furniture, lighting, and other products were also added to the list.

A US government official told Reuters that the Trade Representative Jamieson Greer had spoken with Dominic LeBlanc, Canada’s minister responsible for bilateral US trade.

While the talks lasted over the past couple of days, the pair were expected to speak again to find a breakthrough.

In a social media post on Tuesday night, while criticising the US measures, LeBlanc confirmed the news, stating that he was in contact with Greer regarding a path forward.

“As has been the case for the last 18 months, our first priority remains on protecting and supporting Canadian workers, farmers, families, and businesses from these unjustified actions,” he wrote.

For financial markets, the central concern is how long the confrontation lasts and whether it spreads to the wider US-Mexico-Canada Agreement (USMCA).

The trade agreement is already under annual review, while Trump has declined to extend its term for another decade. The uncertainty surrounding the pact is creating a difficult environment for businesses planning investment and supply chains across North America.

Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral US economic relations, warned of the danger of an escalating cycle.

“What we are worried about is an escalatory spiral,” Harvey said.

Agriculture is among the sectors exposed to the dispute. Canada and the US are major trading partners in food and agricultural products, with farmers and processors on both sides dependent on access to the neighbouring market. Retaliatory tariffs can therefore affect not only exporters but also wholesalers, retailers, and consumers.

Canada also faces a difficult economic calculation. The US remains by far its most important trading partner, meaning Ottawa has fewer options to absorb a prolonged breakdown in bilateral commerce than Washington.

While Canada has waged a trade war against an economy 13 times its size, Carney has become massively popular at home, with a new poll from Angus Reid on Tuesday showing that approval of the former central banker’s performance jumped 11 points to 62% from August’s ratio.

Canadian businesses and consumers have increasingly embraced locally produced goods, while provincial governments have taken different approaches to dealing with the confrontation.

Alberta Premier Danielle Smith, for example, has advocated maintaining close engagement with Washington and avoiding measures that could unnecessarily damage the province’s economy.

Saskatchewan Premier Scott Moe has similarly argued against using major exports such as oil and potash as weapons in the dispute.

Canada has been attempting to diversify its commercial relationships, including closer economic ties with Europe and Asian markets.

The worsening US dispute could accelerate those efforts, potentially changing the direction of Canadian trade and investment over the longer term.

For Washington, however, the tariffs also carry risks. American companies exporting into Canada face a substantial consumer market where higher prices could weaken demand. US manufacturers that depend on Canadian raw materials, components, or customers could see their costs rise.

The danger is that tariffs become embedded in business decisions. Companies may start redesigning supply chains not due to cheaper or more efficient alternatives, but to avoid political intervention. redesigning supply chains not because another source is cheaper or more efficient, but because it is less exposed to political intervention.

That could ultimately reduce the efficiency of North America’s manufacturing system and raise costs across the region.

According to Canadian and US government data, the North American nation has shipped almost 68% of total exports to the Uncle Sam this year, out of which roughly 80% moved duty-free due to exemptions under the USMCA pact.

However, the exemption will now be tested, as the latest Trump tariffs do not allow Ottawa to exercise USMCA clauses.

The post Trade war: Ottawa’s counter-tariffs kick in, Washington bans Canadian imports appeared first on International Finance.

The trade arrangement, which encompasses a market of over 500 million consumers, is currently uncertain. The treaty, which replaced the NAFTA (North American Free Trade Agreement) in July 2020, requires a joint formal review on its sixth anniversary from all three participating nations to consider a 16-year extension.

The post Canada-US trade war: Honda reconsiders North American expansion appeared first on International Finance.

Had the trade deal ‌gone through, it would have cut the top-line tariff rate on Canadian cars and light-duty trucks from 25% to 15% and the tariffs on aluminium and steel from 50% to 25%.

However, last Friday, Washington and Ottawa were unable to reach an agreement on several contentious issues, including whether the US tariff relief should apply to medium- or heavy-duty trucks.

Trump’s threat also threatens to disrupt one of the world’s most integrated auto supply chains. While American auto production is heavily reliant on Canadian-made parts and vehicles, higher tariffs could raise car costs in the world’s largest economy, apart from hammering the continent’s auto stocks.

“Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a state no longer! On trade, and in other ways, also, they are among the worst nations in the world to deal with. They feel entitled, and yet, WE DON’T NEED CANADA; THEY NEED US!” Trump wrote in ⁠a post on his “Truth Social” account.

The post US-Canada trade war: Trump’s tariff threat now targets automobile imports appeared first on International Finance.

Ebrard’s statement came just hours before the breakdown in negotiations between the Washington and Ottawa, a development which has now cast a shadow on the future of USMCA (United States-Mexico-Canada Agreement), that covers trade, digital commerce, intellectual property, and labor/environmental rules among the US, Mexico, and Canada.

“Mexico is pursuing its own track with the United States and would need to see the final published terms of any US-Canada arrangement before making a full assessment,” Ebrard said on Friday (August 21), just hours before Washington and Ottawa decided to move away from the negotiation table, resulting in Trump imposing 50% tariffs on a range of Canadian goods, a move that he kept previously on hold, as both sides were expecting a win-win deal on the trade front.

The failed negotiations between the US and Canada were focused on avoiding the new Section 338 tariffs and resolving a set of bilateral trade disputes, including Washington’s complaints about Ottawa’s dairy quota system, provincial restrictions on American alcohol sales, and retaliatory Canadian duties on some ‌US-built ⁠autos and steel.

The breakdown in negotiations also coincides with the broader 2026 review of the USMCA.

In July, the Trump administration declined to extend the pact for a fresh 16-year ⁠term, triggering a process of annual reviews while the agreement remains in force through 2036 unless the three countries later agree to extend it.

US Trade Representative Jamieson Greer aimed to secure interim arrangements with both Mexico and Canada this year, while deferring more complex issues such as automotive rules of origin, labor, and environmental standards until 2027.

The post USMCA hangs in balance as US-Mexico talks take centre stage after Canada breakdown appeared first on International Finance.

Carney, while confirming the news from his end, sounded cautious as he remarked, ‌”Substantial progress has been made, although there is important work still to be done.”

Trump’s Truth Social post said that the Republican paused the tariffs “based on the fact that Canada and the USA, subject to the finalization of documents, have a DEAL.”

Trump and Carney spoke on Tuesday afternoon, their second conversation this week. Their negotiators, however, have been involved in weeks of intense, in-depth talks regarding the sticky points affecting the bilateral trade between the North American nations.

“While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home,” Carney said.

US Trade Representative Jamieson Greer’s office said the deal will include “comprehensive market access for all American goods, economic security commitments, digital trade alignment, and other provisions.”

Through a proclamation posted ⁠on the White House website, Trump also announced that he had received Canada’s commitment to address Washington’s concerns regarding duties on dairy products, alcoholic beverages, and motor vehicles.

The post We have a deal, says Trump as he pauses 50% tariffs on Canadian goods appeared first on International Finance.

The appointment is the latest piece of a succession plan that began in early 2025 when Bruce Flatt assumed the role of chair of the New York-based asset manager after central banker Mark Carney stepped down to run for the leadership of the Liberal Party of Canada and succeeded Justin Trudeau as the North American country’s Prime Minister. Connor Teskey, who had been seen as a potential successor, joined Brookfield Asset Management in 2012 and was named president in 2022.

Connor Teskey led Brookfield’s Renewable Power and Transition business, apart from serving as the CEO of Brookfield Renewable Partners, which manages investments, operations and growth for the renewable and transition business. Flatt joined Brookfield in 1990 and was named CEO in 2002.

Who Is Connor Teskey?

Born in Vancouver, British Columbia, Teskey attended St. George’s School before earning a Bachelor of Business Administration at the University of Western Ontario. After graduating, he started in corporate debt origination at the Canadian Imperial Bank of Commerce, which gave him exposure to how companies raise money and structure deals. He spent a few years there learning the mechanics of finance, capital markets, lending, and corporate needs, before joining Brookfield in 2012.

At the asset management firm, he began in private equity. Over the next several years, he gradually shifted toward domains like renewable power and infrastructure investing. In 2016, he relocated to London to help expand Brookfield’s renewable energy presence in Europe. That turned out to be a major turning point.

By 2020, he was named CEO of Brookfield Renewable Partners and head of the “Renewable Power and Transition group.” That role put him at the centre of Brookfield’s clean energy strategy, especially as global attention around energy transition accelerated. He also helped lead the firm’s “Global Transition Fund,” one of its largest climate-focused investment vehicles, which became one of the company’s key growth areas.

The post Business Leader of the Week: CEO Connor Teskey to write Brookfield AM’s next chapter appeared first on International Finance.

According to The Independent, the move comes as bitcoin’s value has been slashed down from US$19,000 in December to US$10,900 today. The value was only US$1290 a year ago.

Mr Carney addressed cryptocurrencies as a ‘failure’ during the Inaugural Scottish Economics Conference in Edinburgh.

In his point of view, there are great benefits and responsibilities that accumulate with the financial system. The EU and the US expect the exchanges to be on a par with ‘anti-money laundering and counter the financing of terrorism standards’ met by other financial institutions.

Senior financial crime lawyer at Ropes & Gray, Jo Torode, said, “As cryptocurrencies become increasingly interlinked with the mainstream financial services industry it is inevitable that certain wrongdoers will seek to use them as a means to hide illicit proceeds in the monetary system. Indeed Europol have estimated that four percent of all criminal proceeds in Europe are currently being laundered through cryptocurrencies—or put it another way US$5.5bn in illegal money.

“Regulation particularly for money laundering purposes will therefore likely make cryptocurrencies more attractive to certain mainstream and regulated investors looking to fit a new and potentially profitable means of trading within their existing regulatory framework.”

The rise of new financial systems such as cryptocurrency involves higher risk. In order to curb the system’s downside necessitates continuous improvement in regulation. Torode points out that it is important to ensure the regulation does not stifle innovation.  

Appropriate regulation as she describes would provide legal and regulatory protection to those seeking benefits from cryptocurrencies, and the blockchain technology. “This is the next stage in bringing cryptocurrencies and blockchain within the regulatory framework, speeding up the march towards legitimisation of an asset class that, until a few years ago, many law many enforcement agencies, believed had limited legitimate reasons for people to use.”

However, the drawback of this is mainly heavy time consumption and efforts to distinguish transactions from lawful to illegal activity, she added.

The post Expert insights on The Bank of England cryptocurrency regulation appeared first on International Finance.

The governor also told members of the Treasury Select Committee that a period of transition was ‘highly advisable’. “If such a transition is not put in place, in our view it will have consequences. We will work to mitigate those consequences as much as possible,” he said.

Carney said the UK should concentrate on stable access to financial markets after Brexit.

Last week, the Bank of England’s chief economist, Andrew Haldane, admitted that some criticism of economic forecasts about the immediate impact of a Brexit vote were justified.

Carney told the committee that economic forecasting had improved since the financial crisis, by being more pessimistic. “As you’d expect a bunch of dour central bankers to be, we’re focused on the downside and less focused on how everything could turn out well, but what could go really wrong… and where can we potentially mitigate that. We do have to ask ourselves continually what could go wrong. We don’t have to see a ghost behind every corner, but we do have to ask ourselves what could go wrong.”

The post ‘Immediate risk posed by Brexit has declined’ appeared first on International Finance.

IFM Correspondent

July 15, 2016: In a move that has surprised many, Bank of England (BoE) has kept interest rates unchanged, despite widespread expectations that it was going to cut its benchmark rate in the wake of a June vote in the UK to leave the European Union.

At 0.5%, the rates are at the same level as the past seven years. The rates were last cut in March 2009. The Bank also refused to expand its £375bn quantitative easing scheme by an 8-1 vote.  However, it put households on notice that a rate cut is certain if the economic situation failed to improve over the next month. The Monetary Policy Committee (MPC) said that without a return to more normal conditions, “most members of the committee expect monetary policy to be loosened in August”. BOE also expects a fall in commercial property prices in the coming months.

Sterling rose against the dollar immediately after the news of the unchanged rate.

Earlier Mark Carney, governor BOE, had signalled that a rate cut was almost certain. He had also warned of job losses, banks and companies leaving the country, a plummet in the pound, and even a potential descent into recession. Some of those have happened.

The post BOE keeps rates unchanged appeared first on International Finance.