Shell Canada Energy, a subsidiary of Shell plc, has officially greenlit Phase 2 of the LNG Canada project in Kitimat, British Columbia. The final investment decision will effectively double the facility's overall production output.

"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.”

Phase 2 will add two LNG processing units, known as trains, increasing LNG Canada’s total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa. Shell has a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion. Commercial operations are expected to begin in the early 2030s.

The investment is consistent with Shell's disciplined capital allocation framework and is expected to generate double-digit returns while supporting long-term cash flow growth.

Positioned to supply cost-competitive gas to Asia, the Kitimat facility is primed to capitalize on a massive wave of energy demand. According to Shell’s LNG Outlook 2026, global appetite for LNG will jump roughly 60% by 2040 and 65% by 2050 as nations seek out secure, flexible, and dependable energy supplies.