Shell and its partners gave the green light to an 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.
The expansion would add a further 14 million metric tons per annum (mtpa) of liquefied natural gas export capacity to the facility in Kitimat, British Columbia, effectively doubling the project's total capacity to 28 mtpa.
The proposed expansion comes as LNG buyers, particularly in Asia, are placing a growing emphasis on supply security amid conflict in the Middle East, Red Sea shipping disruptions and uncertainty over future flows through the Strait of Hormuz.
Like this news? Make BIC Magazine a Google preferred news source.
LNG Canada, a joint venture led by Shell and backed by Malaysia's Petronas, 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.
