LNG Canada greenlights $30 billion-plus Kitimat expansion, doubling capacity
Shell-led joint venture approves Phase 2 of liquefied natural gas project, expanding Kitimat facility from 14 to 28 million tonnes per year and creating thousands of jobs.
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Shell-led LNG Canada approved a massive expansion of its Kitimat liquefied natural gas facility Tuesday, greenlighting Phase 2 of what rivals some of the largest private investments in Canadian history.
The expansion is described as worth "tens of billions" of dollars, though an exact figure remains unconfirmed—the headline states "$30 billion-plus" while LNG Canada CEO Chris Cooper told Postmedia the project is worth "tens of billions." Phase 2 would double the Kitimat shipping terminal's capacity from the current two production units, which generate 14 million tonnes of LNG annually, to a four-train, 28 million tonnes per year facility—the scale the project was always envisioned to reach.
The expansion is intended to supply global markets scrambling to secure new LNG sources amid Middle East conflict. Cooper said market conditions "didn't necessarily speed up" the decision but put into sharp focus "the benefit of an additional supply hub capable of delivering a secure supply from a country like Canada." Phase 1 is already delivering material LNG volumes to help replace disrupted global supply.
Federal Energy Minister Tim Hodgson called the decision "a massive vote of confidence in Canada, and proof that not only does Canada have what the world wants — but we can get big projects built to deliver on that."
The expansion is expected to create thousands of jobs. B.C. Conservative leader pledged in September to double LNG production by 2032 and triple it by 2035. An LNG expansion proposal for Delta could also reshape the Metro Vancouver region.
The construction timeline for Phase 2 has not been provided.
What is the precise total cost, and how does it break down between infrastructure and equipment?
When does construction begin, and when would Phase 2 reach full production?
We'll update this story as answers emerge.
By the numbers
What will be LNG Canada's production capacity after Phase 2 is complete?
LNG Canada's Kitimat facility will produce 28 million tonnes of liquefied natural gas per year, doubling its current capacity of 14 million tonnes annually.
How many production units will the expanded Kitimat facility have?
The Phase 2 expansion will bring the Kitimat facility to four production trains, up from the current two units.
