Shell-led LNG Canada to proceed with Phase 2 expansion, doubling export capacity

Canada's first liquefied natural gas export facility, LNG Canada, announced its plan to double its capacity in the early 2030s after Shell approved Phase 2 of the project in Kitimat, British Columbia. Development began years ago with the participation of Shell, Petronas, PetroChina, Mitsubishi, and Korea Gas Corporation Kogas. Phase 2 will add two LNG processing units, increasing the plant's total production capacity from 14 million tonnes per annum to 28 mtpa.

As the world's largest LNG trader, Shell holds a 40% stake in the project and will receive nearly 6 mtpa of additional LNG. The project is expected to continue operating under an equity lifting structure, with each participant responsible for the offtake of its share of LNG production and gas supply. Commercial operations for Phase 2 are slated to begin in the early 2030s, positioning LNG Canada to supply cost-competitive gas to Asian markets where demand is projected to surge by 65% by 2050.

Shell's Integrated Gas President, Cederic Cremers, emphasized the importance of LNG Canada as a core part of the company's Integrated Gas portfolio, providing secure and reliable energy supplies to Asia.