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Shell Canada Approves LNG Canada Phase 2 Expansion

By Drooid · Sep 29, 2026, 10:30 PM UTC · How we work

Summary

Shell Greenlights LNG Expansion

Shell Canada Energy has approved the final investment decision for LNG Canada Phase 2 expansion.
Phase 2 will double annual LNG output from 14 million to 28 million tonnes.
The expansion adds two processing trains, a storage tank, a condensate tank and a loading berth.
Shell’s 40% stake will secure nearly 6 million tonnes per year from the new capacity.
The CAD 33 billion project includes five new compressor stations, nearly doubling the 670-km pipeline’s capacity.

Summary

Indigenous Groups Invest

Indigenous groups can invest up to C$1 billion in a special-purpose entity for the new storage tank.
Phase 2 construction could support up to 4,000 peak jobs in Kitimat.
About 2,100 workers will be needed for new Coastal GasLink compressor stations.
B.C. Conservative leader Lorne Doerkson pledges to triple LNG output by 2035 and cut red tape.
B.C. Greens call for a moratorium on LNG expansion, citing environmental and Indigenous rights concerns.

History

Historical Context

News in 2005 about ExxonMobil’s Alaska LNG plan draws on pipeline concepts first debated after the 1973 oil embargo and codified in the 1977 Alaska Natural Gas Transportation Act. The state-run Alaska Gasline Development Corp. proposes an approximately 800-km line from Prudhoe Bay to Nikiski to export roughly 20 million tonnes of LNG each year, echoing earlier North-Slope ambitions.

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Shell Greenlights LNG Expansion

Shell Canada Energy has approved the final investment decision for LNG Canada Phase 2 expansion.
Phase 2 will double annual LNG output from 14 million to 28 million tonnes.
The expansion adds two processing trains, a storage tank, a condensate tank and a loading berth.
Shell’s 40% stake will secure nearly 6 million tonnes per year from the new capacity.
The CAD 33 billion project includes five new compressor stations, nearly doubling the 670-km pipeline’s capacity.

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