Shell takes final investment decision to double LNG Canada capacity

Shell Canada Energy, an affiliate of Shell plc announced a final investment decision on LNG Canada Phase 2, which will double production capacity at the facility in Kitimat, British Columbia.

Official response and confirmed impact

“Phase 2 supports Shell’s strategic objective to be the world’s leading integrated gas and LNG business by connecting Canadian resources with Shell’s global LNG portfolio, trading capability and customer reach.”

Phase 2 will add two LNG processing units, known as trains, increasing LNG Canada’s total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa.

Shell has a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion.

Commercial operations are expected to begin in the early 2030s.

The investment is consistent with Shell’s disciplined capital allocation framework and is expected to generate double-digit returns while supporting long-term cash flow growth.

Incident background

“LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important,” said Cederic Cremers, Shell’s Integrated Gas President.