LNG Canada to Double Export Capacity After Shell Approves Phase 2

Canada’s first liquefied natural gas export facility, LNG Canada, will double its capacity in the early 2030s after the Shell-led project announced on Tuesday the final investment decision to proceed with Phase 2 of the plant in Kitimat, British Columbia. LNG Canada in Kitimat, B.C., launched exports in the summer of 2025, after years of development by its shareholders Shell, Petronas, PetroChina, Mitsubishi, and Korea Gas Corporation (Kogas). Phase 2 of the first Canadian LNG export facility is planned to add two LNG processing units, or…

LNG Market Background

The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.

New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.

What to Watch

Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.