Shell-led LNG Canada to proceed with Phase 2 expansion, doubling export capacity

Shell plc completed the sale of its 50% interest in the Na Kika platform and 100% in the Coulomb tieback in the Gulf of America to Talos Energy and Ridgewood Energy for $840 million. The transaction aligns with Shell's strategy to reshape its Upstream portfolio. The assets were sold for $840 million in cash, adjusted for changes between July 1, 2025, and the closing date.

Shell and partners approved LNG Canada Phase 2, doubling export capacity in Kitimat, British Columbia, positioning Canada as a major LNG exporter. The project will expand the existing facility.

Shell and partners will double the capacity of their LNG Canada facility in Kitimat, British Columbia, to 28 million tonnes annually. The expansion, set for early 2030s, aims to boost exports to Asia. Shell owns 40% of the venture, with other partners including Petronas, PetroChina, Mitsubishi, and Korea Gas Corp. Canadian PM Carney supports the project as part of a strategy to increase energy exports to Asia and reduce dependence on the US.

LNG Canada, owned by Shell, Petronas, PetroChina, Mitsubishi, and KOGAS, approved a C$33B expansion of its Kitimat LNG export terminal in British Columbia, doubling capacity to 28M tons/year. The project, supported by PM Carney, aims to boost exports to Asia and create jobs. TC Energy will expand the Coastal GasLink pipeline, increasing capacity and jobs.

Shell Canada and partners approved a $25B expansion of LNG Canada, doubling capacity to 28 MMtpa. Phase 2 adds two processing trains, with operations starting in the early 2030s. Shell holds a 40% stake, expecting 6 MMtpa of additional LNG. The project aims for double-digit returns and supports long-term cash flow growth, with global LNG demand forecasted to rise to 700 MMtpa by 2050, according to the company.

Shell and partners committed to doubling LNG Canada's capacity to 28 million tonnes annually, investing up to $23 billion. Shell owns 40%, with operations expected in the early 2030s. The project aligns with Canadian energy policy, aiming to diversify exports and create jobs. Shell's investment follows its acquisition of ARC Resources, expanding its Canadian gas position. Environmental and Indigenous concerns persist.