Shell (SHEL.US) promotes Canadian liquefied natural gas expansion project and is expected to double annual production capacity to 28 million tons

The Zhitong Finance App learned that shareholders of the Canadian LNG joint venture led by Shell (SHEL.US) have made a final investment decision to expand liquefied natural gas exports and advance this multi-billion dollar plan. Meanwhile, major Asian customers are facing the biggest supply shock in recent years.

Shell said in a statement on Tuesday that the investment decision for the second phase of the Kitimat project in British Columbia, Canada will roughly double the project's annual production capacity to 28 million tons. The west coast plant produced the first batch of liquefied natural gas in June 2025, and commercial operation of the expansion project is expected to commence in the early 2030s.

The Iran war and the blockade of the Strait of Hormuz have led to unprecedented tension in the global energy market, prompting importing countries to seek sources of supply outside the Middle East. Canadian Prime Minister Mark Carney positioned the country as the best candidate to fill this gap and added the proposed liquefied natural gas expansion project to the list of “nation building” projects managed by the major project agency he newly established last year.

Other joint venture partners of the Canadian LNG Joint Venture include Petronas, CNPC, Mitsubishi Corporation, and Korea Gas. Midocean Energy, a subsidiary of the private equity firm EIG, also holds shares through Petronas.