Canada driving investment away, needs major changes to regulatory approach: executive

President and Chief Executive Officer of TC Energy François Poirier speaks at a news conference regarding a new indigenous energy project in Calgary, Alta., Tuesday, July 30, 2024. THE CANADIAN PRESS/Todd Korol

OTTAWA — TC Energy chief executive officer Francois Poirier is again calling for major changes to Canada’s regulatory approach, warning the country is driving investment away by slowing down big energy projects.

Speaking to the Canadian Club of Ottawa on Tuesday, Poirier said Canada continues to deter capital with lengthy permitting processes.

“Capital goes where it is welcome. And for too long, it hasn’t felt welcome here,” he said.

Poirier pointed to the United States and Mexico as examples of jurisdictions moving quicker on large infrastructure. He noted that TC Energy’s second subsea natural gas pipeline from Texas to Mexico — the Southeast Gateway Pipeline — went from permitting to in‑service in under three years after approval in 2025.

“We began construction eight months after filing permits and reached in‑service in under three years for a 700‑kilometre subsea pipeline,” he said.

Most of the project is located offshore, reducing delays tied to private land acquisition.

Analysts say Poirier is not wrong about the lag in Canada’s process, though there are hopeful signs of change.

“Yes, the U.S. and Mexico are moving quicker. The U.S., especially in the LNG market, went from nothing to one of the leaders globally,” said Jonathan Hordo with EY Canada. “We’ve lagged behind that. This is really our moment as a country where I think we missed the first wave, we cannot miss this wave.”

The federal government under Prime Minister Mark Carney has created a Major Projects Office aimed at speeding up assessments for projects, such as LNG pipelines. Poirier called the move “a step in the right direction,” but said it does not go far enough.

“If we want Canada to compete — and win … we need to act differently, starting now,” he said.

Poirier also warned that Canada is losing the global competition for investment, despite its resource advantages. He cited figures showing the country’s net foreign investment gap widening from $100 billion in 2014 to $1 trillion in 2024.

He highlighted recent reforms in the U.S. intended to reduce federal approval timelines and prioritize domestic energy and infrastructure development, along with Mexico’s efforts to streamline its own processes.

“Canada can have the fastest‑growing GDP in the G7 — by lifting real GDP growth to over 2 per cent per year by 2030,” Poirier said. “But only if we create an environment where capital wants to stay.”