Shell PLC and its partners in the LNG Canada project are moving forward with a more than $30-billion expansion to double the capacity of their liquefied natural gas (LNG) facility in Kitimat, British Columbia. The decision, which was approved by project partners on Tuesday, reflects expectations of sustained global demand for natural gas over the coming decades.

Chris Cooper, CEO of LNG Canada, emphasized that while current geopolitical events—such as the conflicts in Iran and Ukraine—have disrupted global gas supplies and driven prices higher, the project’s long-term outlook remains strong. Cooper noted that the expansion is based on a projected transition away from higher-carbon fossil fuels toward cleaner energy sources, with LNG playing a critical role during this transition.

“You may argue that there’s some uncertainty right now, but if you look at that long-term demand profile and then the long-term outlook, we think we’ll invest through that cycle,” Cooper said, highlighting the potential for decades of cash flow from the expanded facility.

Shell indicated that the LNG Canada Phase 2 project is among several new LNG plants expected to come online globally in response to growing energy needs. The company forecasts that worldwide LNG demand will rise by about 65 percent, reaching nearly 700 million tonnes annually by 2050. Some market estimates suggest even higher levels of growth.

The expansion in Kitimat aims to position LNG Canada as a key supplier within the evolving energy market, balancing increased demand for cleaner-burning fuels against ongoing uncertainties in the global energy landscape.