Shell-Led LNG Canada Project Eyes October Expansion Approval
The Shell-led LNG Canada project is on track to make a final investment decision on its Phase 2 expansion by early October, according to sources.
The expansion would add 14 million metric tons per annum (mtpa) of liquefied natural gas export capacity to the facility in Kitimat, British Columbia, effectively doubling the project's total capacity to 28 mtpa.
LNG buyers, particularly in Asia, are prioritizing supply security due to conflict in the Middle East, Red Sea shipping disruptions, and uncertainty over future flows through the Strait of Hormuz.
The facility, which shipped its first cargo earlier this year, is strategically positioned on Canada's Pacific Coast, offering shorter shipping routes to key Asian markets compared with US Gulf Coast exporters.