Shell and its joint venture partners have made a final investment decision to proceed with Phase 2 of the LNG Canada facility in Kitimat, British Columbia. The partners are Petronas, PetroChina, Mitsubishi Corporation and Korea Gas Corporation.
The expansion will add two processing units, known as trains. It will double the facility’s total export capacity from 14 million to 28 million tonnes per annum (MTPA).
The project is one of Canada’s largest private-sector investments and is designed to meet rising global demand for liquefied natural gas, particularly in Asia. Shell holds a 40% stake in the venture and expects the project to generate double-digit returns and strengthen long-term cash flow.
Commercial operations for Phase 2 are expected to begin in the early 2030s.