dailynewsnblog
Welcome to Economic Insights, a twice-weekly newsletter focusing on major projects and the Canadian economy at large.
Stories we are following:
- Natural Resources Minister TIM HODGSON is dismissing “pundits” who question the long-term viability of Canadian Liquified Natural Gas (LNG), arguing that conversations with potential clients are a better indicator of demand.
- The SISSON MINE project in New Brunswick is eyeing a 2027 final investment decision, according to the latest federal MAJOR PROJECTS OFFICE update.
Bullish on LNG
Natural Resources Minister TIM HODGSON defended the economics of LNG projects during a House committee appearance last week. Facing questions about uncertain future demand and prices, HODGSON was blunt: “I love pundits, who have no skin in the game… I look at [customers] as a more valuable signal.”
- The AI factor: Countries around the world are anticipating a dramatic increase in electricity demand linked to power-hungry data centres, with many viewing natural gas as a bridge between coal and renewables.
- Nothing inked: CANADA‘s recent trips to INDIA and CHINA resulted only in “joint statements” to deepen trade rather than firm contracts. The government is betting on these markets to absorb Canadian supply.
- Climate counterpoint: Critics, including many climate scientists, warn that locking in capital-intensive LNG infrastructure could delay the shift to truly non-emitting power sources.
- In the works: While LNG CANADA is shipping cargo, others like KSI LISIMS and CEDAR LNG are still awaiting final investment decisions, now expected within the year.
- Critical: CANADA is moving to designate minerals like tungsten as national security priorities.
- Price floors: To protect against cyclical price crashes, the G7 is in talks to set up a “buyers club” that could guarantee price floors for strategic projects.
- Need help: The company behind SISSON previously said it will need support for the project to come online.
By the numbers
7: The total number of LNG export projects currently in various stages of development across Canada.
3.1 Bcm/year: The capacity of ENBRIDGE‘s new natural gas pipeline project, Westcoast Energy’s Sunrise Expansion, recently recommended by the CANADA ENERGY REGULATOR to bolster domestic supply and export potential.
14 Million kg: The projected annual production of uranium concentrate from the ROOK I PROJECT in SASKATCHEWAN. The project is estimated to provide $288.5 million in annual direct payments to the provincial government.
Major projects watch
— Nuclear milestone: CNSC wrapped up the second part of its public hearings for NEXGEN ENERGY‘s ROOK I uranium project in Saskatchewan. If approved, it would become one of the largest new uranium mines in the world.
— Pipeline pushback: Enbridge CEO GREG EBEL tells analysts on an earning calls that the company has no intention of being a proponent for Alberta’s proposed northwest bitumen pipeline.
“I don’t think investors or the infrastructure companies should be taking on the risk of development in jurisdictions that have historically created a challenge,” he said. “…that’s not the type of risk that we’re looking to take on at this time. We don’t need to with all the other opportunities.”
— AI unicorn: Toronto-based AI startup COHERE reportedly surpassed $240 million in annual recurring revenue for 2025, beating its targets by 20%. The growth has sparked intense speculation about a potential 2026 IPO.
— Logging u-turn: The REGIONAL DISTRICT OF NANAIMO has pulled its motion to ban raw log exports. The board rescinded the decision after local manufacturers warned that a total ban would trigger widespread mill closures and put contractors out of business.
— New referral: A new $5B project by KINROSS GOLD CORP. has been referred to ONTARIO’s ‘One Project, One Process’ framework, the first non-critical mineral to make the cut in a government fast-tracking initiative.
Headlines
The Kicker
iPolitics will be at the Prospectors and Developers Association of Canada (PDAC) convention on March 2nd and 3rd.
Book a chat with reporter Aya Dufour.
Have a great day!
