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[BUSINESS] · Canada, Malaysia, China, Japan, South Korea · 31 sources

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LNG Canada partners approve Phase 2 expansion to double production capacity

The LNG Canada joint venture, led by Shell, has reached a final investment decision (FID) to proceed with its Phase 2 expansion in Kitimat, British Columbia. The project, which involves partners including PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS, aims to double the facility’s production capacity from 14 million to 28 million metric tonnes per annum.

The expansion is estimated to require investments ranging from $23 billion to $33 billion. Infrastructure upgrades will include the construction of two additional LNG processing trains, a new storage tank, a condensate tank, a loading berth, and expanded utility systems. To support the increased output, the Coastal GasLink pipeline will be enhanced with five new compressor stations.

Commercial operations for the expansion are expected to commence in the early 2030s. The project is viewed as a strategic move to position Canada as a major global energy exporter and a reliable supplier to Asian markets, particularly as global energy security concerns persist. The expansion is also expected to create thousands of jobs for skilled tradespeople across Canada.

Entities

British Columbia · Kitimat · LNG Canada · Mark Carney · Mitsubishi Corp · PetroChina · Petronas · Shell · Shell plc · TC Energy

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