Shell-led LNG Canada Proceeds with $15 Billion Expansion

LNG Canada has announced that it will proceed with its Phase 2 expansion project in Kitimat, British Columbia. The $15 billion project is a joint venture between Shell and Malaysia's Petronas, PetroChina, Japan's Mitsubishi Corp., and South Korea's KOGAS.

The expansion will build on the existing infrastructure of the first phase of the project, which began shipping liquefied natural gas last year. It will add two new LNG processing units, an additional storage tank, a condensate tank, loading berth, and expanded utility and process systems.

LNG Canada is also working with Coastal GasLink to expand the capacity of the existing 670-kilometre pipeline through the construction of five new compressor stations. This project has faced concerns over equipment issues and flaring in excess of what's allowed under its permits.