Shell-led LNG Canada greenlights Phase 2 expansion, doubling export capacity

Shell

29/09/2026 08:08

Sept 29 (Reuters) - Shell SHEL.L and its partners on Tuesday gave the green light to a LNG Canada Phase 2 expansion in Kitimat, British Columbia, a multi-billion-dollar bet that will double the facility's production capacity to 28 million tonnes per annum (mtpa) and put Canada on a trajectory to become one of the world's largest LNG exporters.
The expansion will add two additional liquefaction trains, increasing LNG Canada's total export capacity from 14 mtpa to roughly 28 mtpa.
Shell, which holds a 40% stake in the joint venture, said it expects to receive nearly 6 mtpa of additional LNG from the expansion, with commercial operations targeted for the early 2030s.
A decision on the project was expected as early as October, Reuters had exclusively reported earlier this month.
LNG Canada, a joint venture led by Shell and backed by Malaysia's Petronas PETR.KL, PetroChina, Mitsubishi Corp and Korea Gas Corp (KOGAS), is Canada's first large-scale LNG export terminal and one of the country's largest private-sector investments.

 (Reporting by Yamini Kalia in Bengaluru; Editing by Nivedita Bhattacharjee)
 ((Yamini.Kalia@thomsonreuters.com))