Canada Doubles Down on LNG Exports with Kitimat Expansion

Shell and its partners have announced plans to expand the LNG Canada facility in Kitimat, British Columbia, doubling its capacity to 28 million tonnes a year. The expansion is set to boost exports of liquefied natural gas (LNG) to Asia, providing a shorter route than via the Gulf of Mexico.

The project, which includes Shell owning 40% of the venture alongside Petronas, PetroChina, Mitsubishi, and Korea Gas Corp, was first approved in 2018. The first phase of the project began last year, and the second phase is expected to start commercial operations in the early 2030s.

According to Shell's forecasts, global LNG demand is expected to grow by about 60% by 2040 and 65% by 2050. This expansion will help Canada move towards becoming one of the world's top five LNG exporting nations, as stated by Prime Minister Mark Carney.