Shell Doubles Down on LNG Canada Expansion

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

The project is a joint venture between Shell (40%), PETRONAS (25%), PetroChina Company Limited (15%), Mitsubishi Corporation (15%), and Korea Gas Corporation (5%). Shell will receive nearly 6 mtpa of additional LNG from the expansion, which is expected to begin in the early 2030s.

The investment aligns with Shell's goal to be the world's leading integrated gas and LNG business. The company aims to connect Canadian resources with its global LNG portfolio, trading capability, and customer reach.