Shell Approves LNG Canada Phase 2, Doubling Capacity to 28 mtpa

Shell Canada Energy approved a final investment decision on Tuesday to expand the LNG Canada facility in Kitimat, British Columbia, doubling production capacity to 28 million tonnes per annum from 14 mtpa. Shell (40%) will receive nearly 6 mtpa of additional LNG. Partners include PETRONAS (25%), PetroChina (15%), Mitsubishi (15%) and Korea Gas Corp (5%). Commercial operations are expected in the early 2030s. Phase 2 adds two processing trains, storage and loading infrastructure, plus five compressor stations on the 670-kilometer Coastal GasLink pipeline. The decision enables a July 14, 2026 equity option agreement with five First Nations through an investment of up to C$1 billion. The project is expected to generate double-digit returns and more than C$50 billion in government revenues. Shell stock traded about 1% lower on Tuesday.