Shell Canada Energy has announced a final investment decision on LNG Canada Phase 2, an expansion that will double the facility’s production capacity in Kitimat, British Columbia.

The project will add two LNG processing units, or trains, increasing total capacity from 14 million tonnes per annum (mtpa) to 28 mtpa.

Shell holds a 40 per cent stake in LNG Canada and is expected to receive nearly 6 mtpa of additional LNG from the expansion.

Commercial operations are targeted for the early 2030s.

Shell said the investment aligns with its capital allocation framework and is expected to generate double-digit returns while supporting long-term cash flow growth.

The Kitimat facility is positioned to supply competitively priced natural gas to Asian markets, where LNG demand is expected to rise.

According to Shell’s LNG Outlook 2026, global LNG demand is projected to increase by around 60 per cent by 2040 and approximately 65 per cent by 2050, driven by rising energy consumption and demand 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 Cederic Cremers, Shell’s Integrated Gas President. “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.” -OGN/TradeArabia News Service