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LNG Canada liquefies fuel from the country’s vast western gas fields for shipment to energy-hungry Asian markets
By Ruth Liao, Thomas Seal and Brian Platt
Shareholders of Canada’s biggest liquefied natural gas facility, including Shell PLC, are poised to make the financial commitment to double the project’s capacity as soon as next week, according to people familiar with the matter.
The backers of LNG Canada Development Inc. are set to announce a final investment decision to proceed with plans to increase its maximum output to 28 million metric tons a year, said the people, speaking on condition they not be identified because the matter is still confidential.
The expansion will require many billions of dollars of investment. The first phase of the project, located on Canada’s northwest Pacific coast in Kitimat, British Columbia, began exporting in 2025.
“Any potential final investment decision remains subject to LNG Canada’s joint venture participants independently satisfying their commercial, fiscal, regulatory and governance requirements,” said a spokesman for the project. “We hope to make an investment decision before the end of the year.”
The decision comes as the Iran War and blockade of the Strait of Hormuz have created an unprecedented tightening in global energy markets, spurring importers to seek out alternative suppliers. Prime Minister Mark Carney is pitching Canada as a top candidate to step into the breach, touting the slogan, “Canada has what the world wants.” He has agreed to try to accelerate making LNG Canada’s second phase a reality.
LNG Canada liquefies fuel from the country’s vast western gas fields for shipment to energy-hungry Asian markets. Its current investors include Shell, Malaysia’s Petroliam Nasional BHD, PetroChina Co., Mitsubishi Corp. and Korea Gas Corp.
In addition, Abu Dhabi’s XRG has been exploring whether to buy a stake in the existing project.
Bloomberg.com
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