LNG Canada's latest project sanction moves its Kitimat expansion beyond planning, with the partners approving a final investment decision on Phase 2.[1][6] Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS will expand the British Columbia terminal from 14 million to 28 million tonnes of annual LNG capacity.[1][6] Shell expects commercial operations from the new phase in the early 2030s.[1]
The expansion will add two liquefaction trains, another LNG storage tank, a condensate tank and a loading berth, as well as utility and processing systems.[1][6] LNG Canada has also entered commercial agreements to expand the capacity of the existing 670 kilometre Coastal GasLink pipeline through five new compressor stations.[6] The original terminal and infrastructure were designed to accommodate four trains.[1][6]
Shell owns 40 percent of the project, PETRONAS 25 percent, PetroChina and Mitsubishi 15 percent each, and KOGAS 5 percent.[1][6] Each partner takes its proportionate share of LNG under the project's equity lifting arrangement.[6] Shell says the expansion will give it nearly 6 million tonnes of additional LNG a year.[1]
Phase 1 began shipping on 30 June 2025 and has since exported more than 100 cargoes, according to gCaptain.[1] LNG Canada says its Pacific location allows shipments to reach Asian markets in roughly 10 days without passing through the Panama Canal.[1][6] The approved expansion increases planned export and loading capacity, rather than the volume available to ship today.[1]
Sources: [1] https://gcaptain.com/lng-canada-greenlights-phase-2-doubling-export-capacity [6] https://newswire.ca/news-releases/lng-canada-announces-phase-2-final-investment-decision-828313121.html Cover photograph shows the first cargo departure from LNG Canada in Kitimat on 30 June 2025, courtesy of LNG Canada. It does not depict Phase 2 construction.