Canada LNG Sets Sights on Doubling Capacity with $7.5 Billion Phase 2 Expansion

Canada LNG has announced that it will double its capacity to become one of the largest liquefied natural gas (LNG) facilities in the world. The project, located in Kitimat, British Columbia, is a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas. It began exports in June 2025 with an annual capacity of 14 million tonnes per annum.

The Phase 2 expansion will add two additional LNG trains within the existing facility, increasing total production capacity from 14 to 28 mtpa. The project includes an additional LNG storage tank, condensate tank, loading berth, and expanded utility and process systems.

According to Shell's LNG Outlook 2026, global LNG demand is expected to rise by around 60 percent by 2040 and around 65 percent by 2050. The Phase 2 expansion is expected to start production in the early 2030s and will add nearly 14 million tonnes per annum of additional LNG capacity for Shell Canada.