Story perspectives

LNG Canada Approves Phase 2, Doubling Output to 28M Tons

By Drooid · Oct 2, 2026, 6:09 PM UTC · How we work

Summary

Story summary

LNG Canada consortium secured a final investment decision for Phase 2.
Phase 2 will double Kitimat output from 14 million to 28 million tonnes annually.
The expansion involves about C$33 billion of private-sector capital.
Shell will receive nearly 6 million tonnes of LNG each year under the equity-lifting structure.
Commercial start is slated for the early 2030s, positioning the plant among the world’s largest.

History

Historical Context

In 2004 the Woodfibre LNG plant in Kitimat, backed by Shell, Petro-Canada and TransCanada, began Canada’s first large-scale LNG exports, shipping about 2.1 million tonnes annually. The 2018 $40 billion LNG Canada final investment decision built on that precedent, planning two 14 mtpa trains. On 29 September 2026 Shell announced a Phase 2 expansion to double output to 28 million tonnes, positioning Canada among the world’s top exporters.

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Story summary

LNG Canada consortium secured a final investment decision for Phase 2.
Phase 2 will double Kitimat output from 14 million to 28 million tonnes annually.
The expansion involves about C$33 billion of private-sector capital.
Shell will receive nearly 6 million tonnes of LNG each year under the equity-lifting structure.
Commercial start is slated for the early 2030s, positioning the plant among the world’s largest.

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