Finance
LNG Canada to Double Export Capacity After Shell Approves Phase 2
A Shell-led consortium has approved the Phase 2 expansion of the LNG Canada export facility in Kitimat, British Columbia, committing approximately 33 billion
Key takeaways
- LNG Canada partners approved the final investment decision for Phase 2, doubling capacity to 28 mtpa.
- The Phase 2 expansion requires an investment of roughly 33 billion Canadian dollars ($23 billion US).
- Fluor Corporation secured a $7.5 billion share of the Phase 2 engineering, procurement, and construction contract.
- TC Energy is moving forward with the Coastal GasLink Phase 2 pipeline expansion to deliver incremental gas supply.
A Shell-led consortium has approved the Phase 2 expansion of the LNG Canada export facility in Kitimat, British Columbia, committing approximately 33 billion Canadian dollars ($23 billion US) to double its capacity to 28 million metric tons per year. Announced on September 29, 2026, the project is expected to begin commercial operations in the early 2030s. The decision has triggered downstream contracts, including a $7.5 billion engineering and construction share for Fluor Corporation and a pipeline expansion by TC Energy.
The expansion positions Canada as a major LNG exporter to supply growing Asian demand.
In their words
“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”
By the numbers
- 28M
- Annual metric tons of LNG production capacity after expansion
- $23B
- US dollar investment committed to the Phase 2 expansion
- 40%
- Shell's ownership interest in the LNG Canada project
- $7.5B
- Fluor Corporation's share of the Phase 2 contract
- +65%
- Expected rise in global LNG demand by 2050
How it unfolded
- LNG Canada launched exports from Kitimat, B.C.
- PM Mark Carney proposed five major projects of national importance
- Partners announced final investment decision to proceed with Phase 2
- Commercial operations of LNG Canada Phase 2 expected to begin
Why this matters
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Global LNG demand is expected to rise by around 65% by 2050.
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Common questions
- What happened with LNG Canada?
- LNG Canada partners approved the final investment decision for Phase 2, doubling capacity to 28 mtpa.
- Where can I read the original report?
- Read the full report at Google News.
