Shell-led Canada LNG expansion approved, annual capacity to increase to 28 million tons

The shareholder group of the Canadian liquefied natural gas (LNG) project led by Shell (SHEL.US) has made a final investment decision to expand its LNG export capacity. As major clients in Asia are facing the largest supply shock in recent years, the project has advanced this multibillion-dollar expansion plan. Shell stated in a press release on Tuesday that Phase 2 of the project, located in Kitimat, British Columbia, Canada, has officially received investment approval. Once completed, the project's annual production capacity will roughly double to 28 million tonnes. The expansion is expected to begin commercial operation in the early 2030s. The Iran war and tighter blockade of the Strait of Hormuz have squeezed global energy supply, prompting gas-importing countries to seek alternative sources outside the Middle East. Canadian Prime Minister Trudeau stated that Canada is poised to fill the supply gap and has listed the LNG expansion as a “nation-building” major project.