Shell Canada Energy has taken a final investment decision on LNG Canada Phase 2, which will double production capacity at the facility in Kitimat, British Columbia, the company announced Tuesday.
Phase 2 will add two LNG processing units, known as trains, doubling LNG Canada's total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa.
Shell holds a 40% interest in LNG Canada and is expected to receive nearly 6 mtpa of additional LNG from the expansion. Commercial operations are expected to begin in the early 2030s.
The investment is in line with Shell's disciplined capital allocation framework and is expected to generate double-digit returns while supporting long-term cash flow growth.
The Kitimat facility is strategically positioned to supply cost-competitive LNG to Asian markets, where demand is expected to grow significantly.
According to Shell's LNG Outlook 2026, global LNG demand is expected to rise by around 60% by 2040 and around 65% by 2050, driven by growing energy demand and the need for secure, flexible and reliable energy supplies.
"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 Shell's Integrated Gas President Cederic Cremers.
"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," Cremers added.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
