Shell approves LNG Canada Phase 2, doubling export capacity to 28 mtpa

September 29, 2026 at 06:30 PM2 min

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Shell and partners announced a final investment decision on Tuesday to proceed with Phase 2 of the LNG Canada export facility in Kitimat, British Columbia. The expansion will add two processing trains, doubling capacity from 14 million tonnes per annum to 28 mtpa. Commercial operations are expected to begin in the early 2030s.

Key Facts

LNG Canada Phase 2 will add two LNG processing trains, increasing total capacity from 14 mtpa to 28 mtpa.
Shell holds a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion.
Commercial operations of LNG Canada Phase 2 are expected to begin in the early 2030s.
The project is positioned to supply cost-competitive gas to Asian markets, where LNG demand is expected to increase significantly.
LNG Canada Phase 2 is first on the list of five major projects of national importance proposed by Canadian Prime Minister Mark Carney in autumn 2025.

Expansion Details

LNG Canada in Kitimat, B.C., launched exports in the summer of 2025 after years of development by shareholders Shell, Petronas, PetroChina, Mitsubishi, and Korea Gas Corporation (Kogas). Phase 2 is planned to add two LNG processing units, or trains, increasing LNG Canada’s total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa. Shell, the world’s biggest LNG trader, holds a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion. The partners have agreed that LNG Canada will continue to operate under an equity lifting structure, whereby each joint venture participant is responsible for the offtake of its proportionate share of LNG production and for bringing its share of gas supply.

Market Context

The project in Kitimat is positioned to supply cost-competitive gas to Asian markets, where demand for LNG is expected to increase significantly, Shell said. According to Shell’s LNG Outlook 2026, global LNG demand is expected to rise by around 65% by 2050, driven by growing energy demand and the need for secure, flexible, and reliable energy supplies. “LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important,” Shell’s Integrated Gas President, Cederic Cremers, said on Tuesday. LNG Canada Phase 2 is first on the list of five major projects of national importance, which Canadian Prime Minister Mark Carney proposed in the autumn of 2025 to diversify Canada’s energy exports from the United States and make it an energy superpower.