Shell (SHEL.US) advances Canada LNG expansion project, annual capacity expected to double to 28 million tons.

Shell (SHEL.US)-led Canada LNG joint venture shareholders have made a final investment decision to expand liquefied natural gas exports and advance the multibillion-dollar plan. At the same time, major Asian customers are facing their biggest supply shock in years. Shell said in a statement on Tuesday that the investment decision on Phase 2 of the Kitimat project in British Columbia, Canada, will roughly double the project's annual capacity to 28 million tons. The West Coast facility produced its first LNG in June 2025, and commercial operations for the expansion are expected to begin in the early 2030s. The Iran war and the blockade of the Strait of Hormuz have caused unprecedented tension in global energy markets, prompting importing countries to seek supply sources outside the Middle East. Canadian Prime Minister Mark Carney has positioned the country as the best candidate to fill this gap and included the proposed LNG expansion project on the "nation-building" project list managed by the major projects agency he newly established last year. Other partners in the Canada LNG joint venture include Petronas, PetroChina, Mitsubishi Corporation and Korea Gas Corporation. MidOcean Energy, owned by private equity firm EIG, also holds a stake through Petronas.