Shell approves LNG Canada expansion to double output
The second phase of the Kitimat project will add two liquefaction trains, increasing production capacity to 28 million tonnes per year and strengthening LNG supply to Asian markets.
Shell Canada Energy has taken the final investment decision for Phase 2 of the LNG Canada project in Kitimat, British Columbia, paving the way for a major expansion that will double the facility’s LNG production capacity.
The project's second phase will add two new LNG processing units, known as trains, increasing total capacity from 14 million tonnes per annum (mtpa) to 28 mtpa. Shell, which holds a 40% stake in LNG Canada, expects to receive nearly 6 mtpa of additional LNG from the expansion.
Commercial operations for the new phase are expected to begin in the early 2030s.
“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,” said Cederic Cremers, President of Integrated Gas at Shell.
Located on Canada’s Pacific coast, the LNG Canada facility is positioned to supply Asian markets with LNG sourced from Western Canada. Shell said the location offers a competitive route to meet growing regional demand.
The company also pointed to long-term market fundamentals supporting the investment. According to Shell’s LNG Outlook 2026, global LNG demand is projected to increase by around 60% by 2040 and approximately 65% by 2050, driven by rising energy consumption and demand for secure and flexible energy supplies.
