Korea Gas Corporation

Shell plc has taken a final investment decision on the second phase of the LNG Canada project in Kitimat, British Columbia, clearing the way for an expansion that will double the facility's production capacity. Phase 2 will add two LNG processing trains and lift total production capacity from 14 million tonnes per annum to 28 mtpa, with commercial operations expected to begin in the early 2030s. Shell owns a 40% stake in the joint venture, alongside PETRONAS with 25%, PetroChina with 15%, Mitsubishi Corporation with 15% and Korea Gas Corporation with 5%, and expects to receive nearly 6 mtpa of additional LNG once Phase 2 comes online. The decision also unlocked TC Energy Corporation's related expansion of the Coastal GasLink pipeline, which currently transports about 2.1 billion cubic feet per day and is designed to nearly double that capacity along the existing 670-kilometer route to Kitimat. Fluor Corporation said its joint venture with JGC Corporation has been selected to provide engineering, procurement, fabrication, construction and commissioning services for Phase 2, with Fluor's share of the award valued at approximately $7.5 billion and expected to enter its backlog in the third quarter of fiscal 2026.

Shell plc-led LNG Canada is reportedly moving toward a Phase 2 expansion, with partners potentially reaching a final investment decision as early as October. The proposed expansion would add 14 million metric tons per annum of LNG export capacity, effectively doubling the facility's total capacity to 28 mtpa from the 14 mtpa produced by the two processing trains of the first phase, which cost about C$40 billion. LNG Canada is a joint venture led by Shell and backed by Petronas, PetroChina, Mitsubishi Corp and Korea Gas Corp, located in Kitimat, British Columbia, and is Canada's first large-scale LNG export terminal. Shell said discussions with its venture partners are continuing on potential pathways for the expansion, and any decision will take into account competitiveness, affordability, government support and stakeholder needs, with the final investment decision targeted before the end of 2026 subject to commercial, fiscal, regulatory and governance requirements. By the second quarter of 2026, LNG Canada had delivered more than 100 cargoes and reached full capacity, contributing to a 17% year-over-year increase in Shell's first-half 2026 LNG liquefaction volumes, and Shell expects a potential Phase 2 investment to add another layer of free-cash-flow growth in the 2030s.