Partners in the Shell-led LNG Canada project have given final approval to a Phase 2 expansion at the Kitimat terminal in British Columbia, a move that will roughly double the facility’s liquefied natural gas export capacity.
The expansion adds two new liquefaction “trains” (processing units) within the existing site, lifting total capacity from 14 million tonnes per annum (mtpa) to about 28 mtpa and positioning LNG Canada among the world’s largest LNG facilities. Commercial operations for the expanded plant are expected to begin in the early 2030s.
Why the expansion matters
The decision comes as global LNG buyers—especially in Asia—prioritise supply security amid geopolitical tensions, shipping disruptions in the Red Sea, and uncertainty around key chokepoints such as the Strait of Hormuz. Tight markets, outages at major producers, and long-term demand from countries shifting from coal to gas are supporting new, diversified LNG sources.
LNG Canada’s Pacific Coast location offers shorter shipping routes to Asian markets than US Gulf Coast exporters that must transit the Panama Canal, enhancing its competitive position.
Project structure and stakes
LNG Canada is a joint venture involving Shell (40% interest), PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS. Shell says it will receive nearly 6 mtpa of additional LNG from Phase 2, supporting its strategy to lead in integrated gas and LNG.
Indigenous participation is a notable feature: a coalition of five neighbouring First Nations, via MNT Investments LP, has an option to invest up to C$1 billion in Phase 2 infrastructure ownership—one of the largest Indigenous investment opportunities in Canadian energy infrastructure.
What gets built
Beyond the two new trains, Phase 2 will include an additional LNG storage tank, a condensate tank, an expanded loading berth, and upgrades to utilities and process systems to support the higher throughput.
The first phase, which began operations in June 2025 at a cost of about C$40 billion, established Canada as an LNG exporter and is viewed as a cornerstone of Ottawa’s ambition to become a top-five LNG exporting nation.
Shell-led LNG Canada approves Phase 2, set to double export capacity
