Shell Approves $23 Billion LNG Canada Expansion, Doubling Output
The Phase 2 project will increase production capacity to roughly 28 million metric tons annually, with operations expected to begin in the early 2030s.
Shell and its LNG Canada partners approved a $23 billion expansion in British Columbia that will double the project’s export capacity, strengthening Canada’s position in global liquefied natural gas markets.
Phase 2 will increase LNG Canada’s production capacity from 14 million metric tons per year to roughly 28 million metric tons. The facility is located in Kitimat on Canada’s Pacific coast and is positioned to supply customers in Asia.
Shell holds a 40% stake in the project. Other partners include Petronas, PetroChina, Mitsubishi Corp. and Korea Gas Corp.
Commercial operations for the expansion are expected to begin in the early 2030s. The decision supports Prime Minister Mark Carney’s effort to position Canada as an energy superpower and diversify trade beyond the United States.
The Canadian government has estimated that LNG Canada will create thousands of jobs and attract about $23 billion in private-sector capital.
