Shell Doubles Down on LNG Canada Expansion

Shell has made a final investment decision to double production capacity at its LNG Canada facility in Kitimat, British Columbia. The Phase 2 expansion will add two new liquefied natural gas (LNG) processing units and other infrastructure, increasing the facility's total production capacity from 14 million tonnes per annum to 28 mtpa.

LNG Canada is a joint venture between Shell, PETRONAS, PetroChina Company Limited, Mitsubishi Corporation, and Korea Gas Corporation. The expansion is expected to generate double-digit returns for Shell while supporting long-term cash flow growth.

The increased production capacity will help meet growing demand for LNG in Asia, where energy security is becoming increasingly important. According to Shell's LNG Outlook 2026, global LNG demand is expected to rise by around 60% by 2040 and around 65% by 2050.