LNG Canada Phase 2 Final Investment Decision Doubles Export Capacity

On September 29, the five joint-venture partners of LNG Canada announced a final investment decision (FID) to proceed with Phase 2 of the Kitimat liquefied natural gas (LNG) export facility. The expansion will add two new liquefaction trains, raising the plant’s name-plate capacity from 14 mtpa to 28 mtpa, effectively doubling the amount of LNG that can be shipped from Canada’s west coast.

LNG Canada Greenlights Phase 2, Doubling Export Capacity Shell Approves LNG Canada Phase 2 to Double Capacity to 28 MTPA Shell approves LNG Canada Phase 2, doubling export capacity LNG Canada Announces Phase 2 Final Investment Decision Shell takes FID to double LNG Canada capacity to 28 MMtpa Shell bets big on Canada with go-ahead for LNG expansion The Globe and Mail (Toronto)Shell Canada approves LNG Canada Phase Two, doubling production capacity

LNG Canada, a joint venture led by Shell Canada Energy (40 % stake) with PETRONAS (25 %), PetroChina (15 %), Mitsubishi Corp. (15 %) and Korea Gas Corp. (5 %), began commercial operations of Phase 1 on June 30 2025. The Phase 2 decision aligns with the federal strategy to position Canada as an “energy superpower” and to diversify trade beyond the United States.

Shell Approves $23 Billion LNG Canada Expansion, Doubling Output LNG Canada Announces Phase 2 Final Investment Decision CNBCOil & Gas JournalThe Globe and Mail (Toronto)Mitsubishi Corporation Reaches Final Investment Decision on LNG Canada Expansion, Doubling Capacity to 28 Million Tons Per Year — BigGo Finance Shell Approves LNG Canada Phase 2 to Double Capacity to 28 MTPA

• Capacity increase: 14 mtpa -> 28 mtpa.

Shell approves LNG Canada Phase 2, doubling export capacity

• Additional LNG for Shell: ~6 mtpa.

Shell Approves LNG Canada Phase 2 to Double Capacity to 28 MTPA

• Pipeline upgrades: Coastal GasLink will add five compressor stations, raising throughput from ~2.1 bcfd to ~5 bcfd.

Shell approves LNG Canada Phase 2, doubling export capacity

• Construction workforce: up to 4,000 peak jobs in Kitimat and 2,100 for the new compressor stations.

LNG Canada Announces Phase 2 Final Investment Decision

• Long-term employment: ~90 full-time roles and 150 contractor positions after construction.

LNG Canada Announces Phase 2 Final Investment Decision

• Indigenous equity option: up to C$1 billion investment by a partnership of five First Nations for a new LNG storage tank.

LNG Canada Announces Phase 2 Final Investment Decision

• Projected government revenue: more than $50 billion over the project’s life (joint-venture estimate).

LNG Canada Announces Phase 2 Final Investment Decision

• Chris Cooper, LNG Canada CEO, called Phase 2 a “nation-building investment” that will create thousands of jobs and strengthen Canada’s role as a trusted energy partner.

CBC NewsLNG Canada Announces Phase 2 Final Investment Decision Shell doubles down on LNG in Canada Shell Approves $23 Billion LNG Canada Expansion, Doubling Output LNG Canada Greenlights Phase 2, Doubling Export Capacity The Globe and Mail (Toronto)

• Cederic Cremers, Shell Integrated Gas President, said the expansion supports Shell’s objective to connect Canadian gas with its global LNG portfolio, enhancing energy security for Asian customers.

Shell bets big on Canada with go-ahead for LNG expansion

• Tim Hodgson, Canada’s Minister of Energy and Natural Resources, described the decision as a “massive vote of confidence” in Canada’s ability to deliver large-scale projects, emphasizing private-capital mobilisation, trade diversification and Indigenous partnership.

LNG Canada Announces Phase 2 Final Investment Decision

Environmental groups and some analysts warn the expansion will raise greenhouse-gas emissions from natural-gas production in British Columbia. Critics note that fracking, the primary extraction method feeding the plant, has been linked to increased seismic activity in the Peace River region. While LNG combustion emits less CO2 than coal or oil, opponents dispute the “clean” label because of the energy intensity of extraction and liquefaction. A federal climate report warns of a 5 °C warming scenario for Canada, which would accelerate glacier loss and intensify summer droughts.

CBC News

Construction of the new trains and associated infrastructure is slated to begin in early 2027, with commercial operations targeted for the early 2030s. The joint venture will continue to work with Coastal GasLink on pipeline upgrades and with the Indigenous equity partnership to finalize the storage-tank investment. Global LNG demand forecasts from Shell’s 2026 outlook anticipate a 60 % rise by 2040, positioning the expanded facility to supply a growing Asian market.

Shell to expand LNG Canada capacity to 28m tonnes