LNG Canada Consortium Greenlights $23B Expansion

The LNG Canada consortium has given the green light to a $23 billion expansion of its western Canadian facility, doubling production capacity to 28 million tonnes per year. The project's second phase is expected to commence operations in the early 2030s and will strengthen Ottawa's strategy of supplying more gas to Asia and Europe.

The expansion is seen as a significant vote of confidence in Canada, according to Energy Minister Tim Hodgson. LNG Canada describes the investment as 'nation-building' that could help lift the country into the world's top five LNG exporters from 19th place last year.

Mitsubishi Corporation estimates its 15% share of phase 2 will cost $3.2 billion, suggesting a total project cost of about $21.3 billion. The consortium includes Shell and four other partners: PetroChina, Kogas, Petronas, and Korea Gas Corp.