The companies involved in LNG Canada have given the green light for a big expansion at the British Columbia export terminal. This will allow them to double the production capacity to 28 million tonnes of LNG each year.
On Tuesday, Shell, PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS announced that they have finalized the investment decision for LNG Canada Phase 2.
The expansion plans include adding two liquefaction trains to the current facility, which has two trains, along with another LNG storage tank, a condensate tank, and a loading berth. Utilities and other processing systems will also be upgraded.
Shell has indicated that commercial operations for Phase 2 are expected to kick off in the early 2030s.
This decision marks a significant increase in Canada’s LNG export capacity, occurring just over a year after LNG Canada began sending out shipments from the nation’s first large-scale LNG export terminal.
Phase 1 started operations on June 30, 2025, and since then, it has dispatched over 100 LNG cargoes from Kitimat. With Phase 2, the overall capacity will rise from 14 million tonnes per year to 28 million tonnes.
“Phase 2 will double LNG Canada’s capacity from 14 to 28 million tonnes a year,” said Chris Cooper, President and CEO of LNG Canada.
The expansion will also require additional gas transportation capacity through the Coastal GasLink pipeline, which is 670 kilometers long and connects northeastern British Columbia's gas supplies to Kitimat. LNG Canada plans to build five new compressor stations to boost pipeline capacity.
The existing terminal and supporting infrastructure were originally designed to accommodate four LNG trains.
In terms of shipping, this expansion will effectively double the available LNG for export from Kitimat. LNG Canada notes that its location on the West Coast allows shipments to reach Asian markets in about 10 days, avoiding longer routes from the U.S. Gulf Coast and through the Panama Canal.
Shell holds a 40% stake in LNG Canada, followed by PETRONAS with 25%, and both PetroChina and Mitsubishi Corporation with 15% each. KOGAS has a 5% share. Under the project's equity structure, each partner provides gas and receives a proportionate share of the LNG produced.
Shell stated that through this expansion, it will gain nearly 6 million tonnes per year of additional LNG. The company highlighted the increasing demand in Asia as a key reason for this investment.
The final investment decision also moves forward a proposed investment for Indigenous ownership that was announced in July. MNT Investments LP, representing the economic development organizations of the Gitga’at, Gitxaa’a, Haisla, Kitselas, and Kitsumkalum First Nations, has the option to invest up to C$1 billion in a special-purpose entity that will own the new LNG storage tank planned for Phase 2.
LNG Canada anticipates that construction will provide support for as many as 4,000 jobs in Kitimat during peak activity, while building the Coastal GasLink compressor stations is expected to require around 2,100 workers.
The project was referred to Canada’s Major Projects Office in September 2025 and has been prioritized by both the federal and British Columbia governments as Canada seeks to expand its energy exports beyond the United States.
Once Phase 2 is complete, LNG Canada would rank among the largest LNG export facilities in the world, significantly enhancing Canada’s role in the global LNG market.