Shell and its partners PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS have reached a Final Investment Decision (FID) on the LNG Canada Phase 2 expansion project in Kitimat, British Columbia (Canada), located in the traditional territory of the Haisla Nation (Shell press release, 29/09/2026).
The phase 2 expansion will add two LNG trains to LNG Canada’s existing Kitimat facility, doubling total production capacity from 14 Mt/year to 28 Mt/year. The project also includes an additional LNG storage tank, a condensate tank, a loading berth, as well as expanded utility and process systems. LNG Canada has also signed commercial agreements to serve as execution manager, working alongside Coastal GasLink to increase the capacity of the existing 670-km pipeline through the construction of five new compressor stations.
- LNG Canada is operated through a joint venture consortium comprising Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi Corporation (15%), and Kogas (5%).
- As part of the expansion, Shell will receive nearly 6 Mt/year of additional LNG.
- According to the company’s press release, commercial operations are expected to start in the early 2030s.
“The facility in Kitimat is positioned to supply cost-competitive gas to Asian markets, where demand for LNG is expected to increase significantly. According to Shell's LNG Outlook 2026, global LNG demand is expected to rise by around 60% by 2040 and around 65% by 2050, driven by growing energy demand and the need for secure, flexible and reliable energy supplies”, added the company.
Canada continues to strengthen its position in the global LNG sector, supported by an expanding pipeline of projects under development and a series of commercial agreements concluded since the beginning of 2026.