Shell Doubles Down on Canadian LNG Expansion Amid Global Supply Crunch
Shell has announced plans to double the liquefied natural gas (LNG) export capacity of its LNG Canada venture in British Columbia, Canada. The decision comes as global energy markets face an unprecedented tightening due to the Iran war and the near-closure of the Strait of Hormuz.
The expansion project will increase capacity from 14 million metric tons per year to 28 million metric tons per year and is expected to draw around $23 billion in investment. The second phase of the project is set to start commercial operations in the early 2030s, with Shell holding a 40% stake in the venture.
The decision underscores Shell's push to grow in LNG as major energy companies tout it as a key bridge fuel in the transition to cleaner energy sources. Canadian Prime Minister Mark Carney has identified the proposed LNG expansion as one of the country's top 'nation-building' developments.