Shell and Partners Sanction C$33 Billion LNG Canada Expansion

Shell PLC and its partners have officially sanctioned the second phase of the LNG Canada project, committing C$33 billion to double the export capacity of the facility in Kitimat, British Columbia. The final investment decision marks one of the largest private-sector investments in Canadian history.

Project Scope and Capacity

The expansion will add two new liquefaction units, known as "trains," to the existing facility. This will increase the plant's total export capacity from 14 million tonnes per annum (mtpa) of liquefied natural gas to 28 million mtpa.

As the largest stakeholder in the joint venture, Shell holds a 40% interest and expects to receive nearly 6 million additional tonnes of LNG supply from the expansion. The company is targeting the early 2030s for the new phase to become commercially operational.

Strategic Importance

This investment solidifies LNG Canada's role as the nation's flagship LNG export terminal. Upon completion, the expanded facility is poised to become one of the largest of its kind in the world, significantly elevating Canada's status as a major global LNG supplier.

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Canadian business groups, including the Canadian Chamber of Commerce, have reportedly welcomed the decision. They view it as a crucial signal to international investors that Canada can successfully execute large-scale energy infrastructure projects, fostering economic growth and job creation.

Joint Venture Partners

LNG Canada is a multinational consortium. Besides Shell, the key partners in the venture include:

• Petronas (via Petronas Chemicals Group Bhd)
• PetroChina Company Limited
• Mitsubishi Corporation
• Korea Gas Corporation