Shell Expands LNG Capacity in British Columbia

Shell Canada Energy has approved the second phase of its liquefied natural gas (LNG) project in British Columbia, Canada. The expansion, valued at approximately CAD$33 billion ($23.25 billion), will increase production capacity from 14 million tons per year to 28 million tons by the early 2030s.

The new phase will introduce two additional processing trains and enhance storage capacity at Shell's Kitimat facility. The company expects this expansion to deliver double-digit returns while supporting long-term cash flow growth.

According to Shell, global LNG demand is forecasted to increase by about 65% by 2050, driven by growing energy needs and the requirement for secure, flexible, and dependable energy supplies. The life-cycle greenhouse gas emissions intensity of electricity generated from LNG is approximately 40% lower than that produced from coal, as per the International Energy Agency (IEA).

The Kitimat facility will continue to provide cost-competitive gas to Asian markets, where demand is expected to surge in the coming decades. Shell owns a 40% stake in LNG Canada and expects to gain approximately 6 million tons of additional LNG from the expansion once commercial operations commence.