LNG Canada to Double Export Capacity After Shell Approves Phase 2

The Shell-led LNG Canada venture has approved the final investment decision to build Phase 2 of its Kitimat liquefied natural gas facility, a move that will double the plant’s production capacity. The original terminal began exports in the summer of 2025 after years of development by its shareholders: Shell, Petronas, PetroChina, Mitsubishi, and Korea Gas Corporation (Kogas). Phase 2 will add two additional LNG trains, taking total output from 14 million tonnes per annum (mtpa) to 28 mtpa. Shell, which holds a 40% stake in the project, will receive almost 6 mtpa of incremental LNG from the expansion under the partners’ share arrangements. The venture will continue operating under an equity lifting framework, meaning each joint-venture partner is responsible for lifting and supplying its proportionate share of production. The partners expect commercial operations for the new trains to begin in the early 2030s. Shell described the Kitimat project as positioned to deliver competitively priced gas into Asian markets amid forecasts of rising demand. In its LNG Outlook 2026, Shell projects global LNG demand could increase by roughly 65% by 2050. Canadian political leaders have highlighted the expansion as aligned with a broader effort proposed in 2025 to diversify the country’s energy export footprint.