Shell plans to double LNG at Canadian unit

By the Editorial Team · Wednesday, September 30, 2026

Shell has approved a $23 billion investment to double the capacity of its LNG operations in Canada by adding two new processing units to the Kitimat facility. This expansion will strengthen Canada's position as a key LNG supplier to Asian markets and support Shell's goal to increase LNG production amid rising global demand and geopolitical energy tensions.

Shell has approved a $23 billion expansion project that will double the capacity of its liquefied natural gas (LNG) operations in Canada, reinforcing its position among the world’s largest gas producers. The investment will fund the second phase of the LNG Canada development, which involves adding two additional LNG processing units to its existing facility in Kitimat, British Columbia.

Once completed, the expanded complex will boost total production capacity from 14 million tonnes per annum to 28 million tonnes. Shell, which holds a 40 percent stake in the joint venture, is set to receive six million tonnes annually from the increased output. The expansion is expected to come online during the 2030s. The project is also supported by Korea Gas, the South Korean state-owned energy company, and Mitsubishi, a Japanese conglomerate.

LNG Canada’s growth is poised to elevate Canada’s role as a major LNG supplier on the global stage, with a specific focus on meeting increasing demand from Asian markets. Shell emphasized that the project will contribute to energy supply diversification and enhance energy security amid ongoing geopolitical tensions.

The escalation of conflict between Iran and the United States has disrupted the strategic Strait of Hormuz shipping lane, contributing to significant increases in gas prices worldwide. This volatility has benefited Shell’s energy trading division, which reported adjusted earnings of $9.8 billion for the second quarter—its highest quarterly figure since Russia’s invasion of Ukraine in 2022.

Since becoming CEO in 2023, Wael Sawan has pushed to grow Shell’s LNG production, targeting an annual sales volume increase of four to five percent through 2030. The company’s latest LNG outlook anticipates global demand rising by approximately 60 percent by 2040 and 65 percent by 2050.

In addition to the LNG expansion, Shell has been expanding its Canadian footprint. In April, the company announced a $16 billion deal to acquire Arc Resources, a Canadian shale producer, describing Canada as a future “heartland” for its energy supply.

Following the announcement of the LNG project expansion, Shell’s shares closed down 1.7 percent at £35.94.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.