LNG Canada Phase 2 Moves Ahead With $33-Billion Expansion in Kitimat
LNG Canada is expanding its Kitimat terminal with a $33B investment, doubling capacity to 28M tonnes annually. Owned by Shell, Petronas, and others, the project will create jobs and require Coastal GasLink pipeline upgrades. First Nations may invest $1B in infrastructure. The expansion is supported by B.C. parties but debated on policy.
How this was made
The 30-second read
Why it matters
The $33 billion investment signals a major increase in Canadian LNG exports, likely lifting the share prices of the owners and related infrastructure firms.
Market read
The expansion creates a large new source of LNG for Asia, enhancing the valuation of the owners and pipeline operator.
What to watch
Potential regulatory or environmental challenges could delay the project and affect returns.
Background
LNG Canada is a joint venture of Shell, Petronas, PetroChina, Mitsubishi and Kogas, planning a Phase 2 expansion to double output.
Ticker impact
Shell Canada holds a 40% stake in LNG Canada and is a key owner of the Phase 2 expansion.
likely upward pressure as investors price in higher future LNG revenue
Large $33B expansion doubles capacity, increasing Shell's exposure to Asian LNG demand.
TC Energy (TSX:TRP) will upgrade the Coastal GasLink pipeline to support the expanded LNG Canada facility.
moderate upside as the project adds long‑term fee revenue
Phase 2 requires pipeline capacity nearly doubling, benefiting TC Energy's infrastructure business.
Market effects
Boosts North American LNG supply outlook and may benefit other LNG exporters.
Strengthens Canada's energy export profile, supporting Canadian equities tied to energy.
Adds significant new LNG capacity for Asian markets, influencing global gas pricing.
Counterpoint
If Asian LNG demand softens, the added capacity could lead to oversupply and price pressure.
Key entities
- CompanyShell Canada
40% owner of LNG Canada.
- CompanyTC Energy
Operator of the Coastal GasLink pipeline.
- CompanyPetroChina
15% owner of LNG Canada.
- CompanyMitsubishi Corporation
15% owner of LNG Canada.
