Electric tugboats moored next to an LNG tanker being loaded at the LNG Canada docks in Kitimat, British Columbia, Canada, Monday, July 14, 2025.
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A consortium led by the British oil giant Shell is moving ahead with plans to expand its flagship liquefied natural gas (LNG) project in Canada, providing a major boost to Prime Minister Mark Carney’s ambition to make the country an “energy superpower.”
Shell said in a statement Tuesday that it has made a final investment decision to double production capacity at the LNG Canada project in Kitimat, British Columbia, to approximately 28 million metric tons per year (mtpa), from 14 mtpa.
Shell is leading the LNG Canada project with a 40% stake. The joint venture also has support from Malaysia’s Petronas, China’s PetroChina, Japan’s Mitsubishi Corp and South Korea’s state-owned Korea Gas Corp.
This long-awaited investment is expected to allow Canada to become one of the world’s leading LNG exporters at a time when global supplies have been significantly disrupted by the U.S.-Iran war and countries aligned with Ukraine are working to reduce their dependence on Russian gas.
Located on Canada’s Pacific coast, the project is well positioned to supply LNG to key customers in Asia, with commercial operations expected to begin in the early 2030s.
“LNG Canada is a critical part of our integrated gas portfolio, helping to deliver LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important,” said Cederic Cremers, Shell’s president of integrated gas.
“Phase 2 supports Shell’s strategic objective to become the world’s leading integrated gas and LNG company by connecting Canadian resources to Shell’s global LNG portfolio, commercial capacity and customer reach,” he added.
Shell shares listed in London so far this year.
LNG Canada, meanwhile, described the investment as a “nation-building investment” that will “further strengthen Canada’s role as a trusted energy partner.”
The Government of Canada has previously estimated that the LNG Canada project would create thousands of jobs and attract C$33 billion ($23.2 billion) in private sector capital.
Carney, who campaigned in 2025 to make Canada a “global energy superpower,” sought to present Ottawa as a stable energy partner. The Canadian government is currently locked in a trade feud with the Trump administration and seeking to reduce its dependence on the United States.
Shell shares listed in London fell almost 1% on Tuesday. The stock is up more than 32% since the start of the year.
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