Shell Partners Edge Closer to Doubling LNG Canada Capacity

Shell and its partners are moving towards doubling the capacity of the LNG Canada project in Canada. The move comes just weeks after Shell's $16.5 billion acquisition of ARC Resources, which added significant natural-gas resources to Shell's portfolio.

The original LNG Canada project has a production capacity of approximately 14 million tonnes per annum. If Phase 2 proceeds, the terminal's potential output would double to around 28 million tonnes annually.

Shell holds a 40% interest in LNG Canada and is one of the world's largest LNG traders. The company has stated that its global LNG operations are central to its strategy, and doubling the Canadian export facility would strengthen Shell's control over a chain stretching from vast Canadian gas reserves to international LNG buyers.

The project's partners are poised to approve Phase 2, with an announcement potentially coming as soon as next week. A final investment decision would require the participating companies to commit substantial additional capital.