Shell Consortium Approves Expansion of LNG Canada Project

A consortium led by British oil giant Shell is moving forward with expansion plans on its flagship liquefied natural gas project (LNG) in Canada, in a major boost to Prime Minister Mark Carney's ambition to make the country an "energy superpower."

Shell said in a statement on Tuesday that it had reached a final investment decision to double production capacity at the LNG Canada project in Kitimat, British Columbia, to roughly 28 million metric tons per annum (mtpa), up from 14 mtpa.

Shell leads the LNG Canada project with a 40% stake. The joint venture also has the backing of Malaysia's Petronas, China's PetroChina, Japan's Mitsubishi Corp and South Korea's state-owned Korea Gas Corp.

The long-awaited investment is expected to put Canada on course to become one of the world's leading LNG exporting nations at a time when global supplies have been significantly disrupted by the U.S.-Iran war — and as countries aligned with Ukraine push to reduce dependence on Russian gas.

Located on Canada's Pacific coast, the project is positioned to supply LNG to key customers in Asia, with commercial operations set to start in the early 2030s.

"LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important," said Cederic Cremers, Shell's integrated gas president.

"Phase 2 supports Shell's strategic objective to be the world's leading integrated gas and LNG business by connecting Canadian resources with Shell's global LNG portfolio, trading capability and customer reach," he added.

LNG Canada, meanwhile, described the investment as a "nation-building investment" that will "further strengthen Canada's role as a trusted energy partner."

Canada's government has previously estimated that the LNG Canada project will create thousands of jobs and attract 33 billion Canadian dollars ($23.2 billion) in private sector capital.

Carney, who campaigned in 2025 to turn Canada into a "global energy superpower," has sought to showcase Ottawa as a stable energy partner. The Canadian government is currently locked in a trade feud with the Trump administration and is seeking to reduce its reliance on the U.S.

Shell's London-listed shares traded nearly 1% lower on Tuesday. The stock is up more than 32% year-to-date.