Shell backs $23 billion LNG Canada expansion in boost to Carney’s ‘energy superpower’ push

A consortium led by British oil giant Shell is moving forward with expansion plans on its flagship liquefied natural gas project (LNG) in Canada, in a major boost to Prime Minister Mark Carney's ambition to make the country an "energy superpower."

Official response and confirmed impact

Shell leads the LNG Canada project with a 40% stake.

The joint venture also has the backing of Malaysia's Petronas, China's PetroChina, Japan's Mitsubishi Corp and South Korea's state-owned Korea Gas Corp.

The long-awaited investment is expected to put Canada on course to become one of the world's leading LNG exporting nations at a time when global supplies have been significantly disrupted by the U.S.-Iran war — and as countries aligned with Ukraine push to reduce dependence on Russian gas.

Incident background

Shell said in a statement on Tuesday that it had reached a final investment decision to double production capacity at the LNG Canada project in Kitimat, British Columbia, to roughly 28 million metric tons per annum (mtpa), up from 14 mtpa.

Located on Canada's Pacific coast, the project is positioned to supply LNG to key customers in Asia, with commercial operations set to start in the early 2030s.