LNG Canada to Double Capacity in Early October Expansion

The Shell-led LNG Canada project is on track to approve its Phase 2 expansion by early October, according to sources familiar with the matter. The expansion would add 14 million metric tons per annum (mtpa) of liquefied natural gas export capacity, effectively doubling the facility's total capacity to 28 mtpa.

The project's first phase, which cost around C$40 billion, is designed to produce 14 mtpa of LNG from two processing trains. The facility shipped its first cargo earlier this year and is seen as a cornerstone of Canada's effort to become a major global LNG exporter.

LNG buyers in Asia are placing a growing emphasis on supply security due to conflict in the Middle East, Red Sea shipping disruptions, and uncertainty over future flows through the Strait of Hormuz. This has driven interest in new LNG projects and more diversified sources of supply.