LNG Canada Doubles Liquefaction Capacity with Phase 2 Expansion

LNG Canada, a joint venture led by Shell, has sanctioned the Phase 2 expansion of its liquefaction capacity to 28 million tonnes per annum (MMtpa), doubling it from the current 14 MMtpa. The expansion is expected to be completed in the second half of 2031 or the first half of 2032 and will include the construction of two additional LNG trains, an extra storage tank, condensate tank, loading berth, and additional systems.

The project's cost is estimated at C$33 billion (US$23 billion), with no timeline announced for completion. The expansion will also see the Coastal GasLink pipeline double its throughput capacity to 5.0 Bcf/d, with five new compressor stations added to increase gas supply to both LNG Canada and the under-construction Cedar LNG project.

The JV partners have also confirmed that the positive sanctioning of the Phase 2 expansion will trigger an equity agreement with five neighboring First Nations, resulting in a C$1 billion investment in a special purpose equity firm, MNT Investments LP.