Shell Doubles Down on LNG Canada Expansion

Shell has taken a final investment decision (FID) to double LNG Canada's production capacity at its Kitimat, BC plant. The expansion, known as Phase 2, will add two new liquefied natural gas (LNG) processing trains and increase the facility's output to 28 million tonnes per year from 14 million.

The project also includes an additional LNG storage tank, condensate tank, loading berth, and expanded utility and process systems. Shell, which holds a 40% interest in LNG Canada, will receive nearly 6 million tonnes per year of additional LNG from the expansion.

Fluor Corp. and its joint venture partner JGC Corp. have received notice to proceed with engineering, procurement, fabrication, construction, and commissioning services for LNG Canada Phase 2. Work will be executed by a Canadian joint venture between Fluor Canada Ltd. and JGC Constructors (No. 2) BC Ltd.

The Coastal GasLink pipeline, which supplies the Kitimat plant, is also undergoing an expansion to nearly double its capacity from 2.1 billion cubic feet per day. The project will add five compressor stations and upgrade infrastructure along the existing 670-km route.