of globally traded petroleum flows through the strait
LNG CANADA PHASE 2 CAPACITY
28 MT/yr
projected annual LNG export capacity after expansion
ORIGINAL LNG CANADA CAPACITY
14 MT/yr
Phase 1 capacity — Phase 2 doubles this figure
Cost Driver Breakdown
Higher oil & gas spot prices54%
Emergency LNG procurement premiums22%
Rerouting & shipping surcharges14%
Rushed import infrastructure buildout10%
EU LNG Import Sources (2027, approx.)
United States
46%
Norway (pipeline)
28%
Qatar
11%
Algeria
8%
Other
7%
Context
Europe's Compounding Energy Shock
Europe's extra $113.5 billion energy bill is not just about the Iran war. It lands on top of a decade of restructuring triggered by Russia's 2022 invasion of Ukraine, which ended the era of cheap Russian pipeline gas. The Iran disruption is therefore a second shock to a system still recovering from the first — compressing timelines for LNG import terminals, spot-market contracts, and renewable buildout all at once.
Questions & Context
Sources: AP News · CNBC · U.S. Energy Information Administration · International Energy Agency · Shell / LNG Canada