Shell Greenlights LNG Canada Expansion to Double Export Capacity

The project, a joint venture between Shell, Petronas, PetroChina, Mitsubishi, and Korea Gas Corporation, launched its initial export operations in the summer of 2025. Phase 2 introduces two additional processing units, or trains, to the site. Shell, which maintains a 40% stake in the venture, expects to secure nearly 6 million tonnes of additional annual supply from the new infrastructure. Under the established equity lifting structure, each partner remains responsible for sourcing its own gas supply and marketing its proportionate share of the output.

This move aligns with broader shifts in Canadian energy policy. Prime Minister Mark Carney identified the Kitimat expansion as the lead initiative among five national projects aimed at diversifying exports away from reliance on the United States. Shell’s Integrated Gas President, Cederic Cremers, cited the project’s role in bolstering energy security and supply diversity for Asian consumers. Current projections from Shell’s LNG Outlook 2026 suggest a 65% surge in global demand for liquefied natural gas by 2050, fueled by the push for flexible and reliable energy sources.