Shell and Partners Weigh Final Decision on LNG Canada Phase 2 Expansion

Shell-led LNG Canada project partners are nearing a final investment decision on a Phase 2 expansion. This decision could come as early as October. The proposed expansion would double the British Columbia facility's export capacity. It would reach 28 million metric tons per year.

Global demand for LNG remains strong. Asian buyers particularly focus on supply security. This focus stems from geopolitical instability in the Middle East. The project's location on Canada's Pacific Coast offers shorter shipping routes to Asia. This compares to U.S. Gulf Coast competitors. Joint venture partners include Shell, Petronas, PetroChina, Mitsubishi Corp, and Korea Gas Corp.

The decision to proceed depends on project competitiveness, affordability, and government support. The expansion also includes an option for a coalition of local First Nations to invest up to C$1 billion.