Shell Doubles Down on LNG Canada Expansion

Shell has taken a final investment decision to double the production capacity of LNG Canada, a facility in Kitimat, British Columbia. Phase 2 of the project will add two new liquefied natural gas (LNG) processing units, increasing the total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa.

Shell holds a 40% interest in LNG Canada and expects to receive nearly 6 mtpa of additional LNG from the expansion. Commercial operations are expected to begin in the early 2030s.

The investment is part of Shell's disciplined capital allocation framework, which aims to generate double-digit returns while supporting long-term cash flow growth.