07/10/2026 by Joel Thompson
UK-based Shell, through its local affiliate Shell Canada Energy, has made a final investment decision (FID) for Phase 2 of the LNG Canada development.
The second phase of development for the facility, which is located in Kitimat, British Columbia, will double its production capacity. Two new trains, which are units for processing liquified natural gas (LNG), will be added, raising total annual capacity to 28 million tonnes from 14 million tonnes.
Shell, which makes the Gadus grease range, has a 40% stake in the facility, so it will receive almost six million tonnes in extra LNG per year.
The president for integrated gas at Shell, Cederic Cremers, said that as a central element of the company’s gas portfolio, LNG Canada will help provide:
“…LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important. 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.”
The expansion is expected to start operating commercially early in the next decade. The company says the decision is in line with its disciplined strategy for capital allocation, with it expected to support growth in cash flow in the long term. The demand for LNG in Asian markets is expected to significantly increase as the region looks for reliable, flexible and secure energy supplies. The Kitimat facility is geographically well placed to supply these markets with LNG at competitive prices.
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