Shell Doubles Down on Canadian LNG Expansion Amid Global Demand Boom

Shell Canada Energy has finalized plans to double its liquefied natural gas (LNG) production capacity at the Kitimat, British Columbia facility. The expansion, known as LNG Canada Phase 2, will add two new trains to the existing plant, increasing output from 14 million tonnes per annum (mtpa) to 28 mtpa by the early 2030s.

The project is expected to generate double-digit returns and support long-term cash flow growth for Shell. Cederic Cremers, Shell's Integrated Gas President, stated that LNG Canada is a core part of their integrated gas portfolio, helping to supply LNG to customers in Asia at a time when energy security is increasingly important.

The global demand for LNG is expected to increase by around 60% by 2040 and approximately 65% by 2050, according to Shell's LNG Outlook 2026. The expansion of LNG Canada will enable the company to supply cost-competitive gas to Asian markets, where energy demand is expected to increase significantly.