Shell Bets Big on Canada With Go-ahead for LNG Project Expansion, Doubling Capacity to 28 Mtpa

September 29, 2026 · 1 day ago

With this expansion move, production capacity at Shell's facility is set to jump to 28 million tons per annum (mtpa) by the early 2030s.

Shell Canada Energy, an affiliate of the UK-headquartered energy giant Shell, has signed off on the next chapter of a liquefied natural gas (LNG) project on Canada's West Coast. This multibillion-dollar expansion will add two new processing trains and extra storage in British Columbia, keeping the firm well-supplied to ship Canadian gas to growing Asian markets.

Shell Canada Energy has taken a final investment decision (FID) on LNG Canada Phase 2, which will increase production capacity at its facility in Kitimat, British Columbia. Phase 2 will add two LNG processing units, known as trains, increasing the project’s total production capacity from 14 million tons a year to 28 mtpa. Coastal GasLink will expand the capacity of the existing 670-kilometer pipeline through the construction of five new compressor stations.

Cederic Cremers, Shell’s Integrated Gas President, commented: "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. 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.”

Shell has a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion, once commercial operations begin in the early 2030s. The company emphasizes that this investment is expected to generate double-digit returns while supporting long-term cash flow growth.