LNG Canada Shareholders Poised to Approve Major Expansion Amid Global Energy Tightening
Shareholders of LNG Canada, including Shell PLC, are expected to approve a final investment decision next week to double the project's capacity in Kitimat, British Columbia. The expansion aims to meet Asian demand amid global energy market tightening caused by the Iran War and Strait of Hormuz blockade.
Shareholders of LNG Canada Development Inc., including major partner Shell PLC, are poised to make a financial commitment as soon as next week to double the capacity of the liquefied natural gas project located in Kitimat, British Columbia. This move would increase the facility's maximum output to 28 million metric tons per year.
The potential expansion comes at a time when global energy markets are experiencing unprecedented tightening due to the Iran War and the blockade of the Strait of Hormuz. These geopolitical factors have spurred importers to seek out alternative suppliers, positioning Canada as a top candidate to step into the breach in global energy supply. Canadian Prime Minister Mark Carney has agreed to try to accelerate making LNG Canada’s second phase a reality, pitching the country as an alternative supplier amidst this volatility.
The first phase of the LNG Canada project began exporting in 2025. Current investors in the venture include Shell, Petroliam Nasional BHD, PetroChina Co., Mitsubishi Corp., and Korea Gas Corp. Additionally, Abu Dhabi’s XRG has been exploring whether to buy a stake in the existing project.
Despite the momentum, a spokesman for the project stated that any potential final investment decision remains subject to satisfying commercial, fiscal, regulatory, and governance requirements. The partners hope to reach a decision before the end of the year. The expansion requires billions in investment to meet growing Asian demand.