Shell plc has made a final investment decision (FID) on Phase 2 of the LNG Canada project in Kitimat, British Columbia. The expansion is intended to meet projected growth in global LNG demand, particularly in Asian markets.
Phase 2 will add two LNG processing units, known as trains. This will increase the facility’s capacity from 14 million to 28 million tonnes per annum.
Shell holds a 40% stake in the joint venture. The company said the investment aligns with its capital allocation framework and is expected to generate double-digit returns and support long-term cash flow.
Commercial operations for Phase 2 are anticipated to begin in the early 2030s.