LNG Canada Set to Double Capacity Amid Rising Global Demand

LNG Canada, the first liquefied natural gas export facility in Canada, is set to double its capacity by the early 2030s. Shell, the world's largest LNG trader, has approved Phase 2 of the project, which will add two new LNG processing units, or trains. This expansion will increase total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa.

Shell holds a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion. The project's partners have agreed to continue operating under an equity lifting structure, where each joint venture participant is responsible for the offtake of its proportionate share of LNG production.

The expansion is expected to supply cost-competitive gas to Asian markets, where demand for LNG is expected to rise significantly by 2050. According to Shell's LNG Outlook 2026, global LNG demand will increase by around 65% driven by growing energy demand and the need for secure, flexible, and reliable energy supplies.

LNG Canada Phase 2 is a key project in Canadian Prime Minister Mark Carney's plan to diversify Canada's energy exports from the United States and make it an energy superpower.