Shell-led LNG Canada greenlights Phase 2 expansion, doubling export capacity

By Reuters News

Sept 29 (Reuters) - Shell SHEL.L and its partners on Tuesday gave the green light to a LNG Canada Phase 2 expansion in Kitimat, British Columbia, a multi-billion-dollar bet that will double the facility's production capacity to 28 million tonnes per annum (mtpa) and put Canada on a trajectory to become one of the world's largest LNG exporters.

  • The expansion will add two additional liquefaction trains, increasing LNG Canada's total export capacity from 14 mtpa to roughly 28 mtpa.

  • Shell, which holds a 40% stake in the joint venture, said it expects to receive nearly 6 mtpa of additional LNG from the expansion, with commercial operations targeted for the early 2030s.

  • A decision on the project was expected as early as October, Reuters had exclusively reported earlier this month.

  • LNG Canada, a joint venture led by Shell and backed by Malaysia's Petronas PETR.KL, PetroChina, Mitsubishi Corp and Korea Gas Corp (KOGAS), is Canada's first large-scale LNG export terminal and one of the country's largest private-sector investments.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.