Business · Energy & Commodities · 2 hrs ago
LNG Canada Expansion Approved, Doubling Capacity to 28 Million Tonnes a Year
LNG Canada’s owners approved a major expansion of the export facility in British Columbia.
The project is backed by Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.
The expansion would double capacity to 28 million tonnes a year, strengthening Canada’s ability to supply Asian buyers.
The Kitimat terminal is on the Pacific coast, and its shorter shipping routes to Asia avoid the Panama Canal and Middle East chokepoints.
Asian demand for liquefied natural gas is projected to grow, from about 260 million tonnes a year today to around 500 million by 2060.
Canada also faces competition from new projects in the United States and other regions, and analysts warn its chance to win buyers is narrowing.
Canada’s success will depend on competitive costs and timely delivery of its projects.
The partners in LNG Canada approved a Phase 2 expansion that will double the facility’s capacity to 28 million tonnes a year.
The project is intended to strengthen Canada’s ability to supply Asian LNG markets.
Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS approved the final investment decision last month.
Canada is expected to export 33 million tonnes of LNG a year by the end of the decade, including output from Cedar LNG and Woodfibre.
Wood Mackenzie says growing Asian demand offers an opportunity, but warns that competition for investment and market share is intensifying.
- Who
- Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS approved the expansion.
- What
- They approved the final investment decision for LNG Canada Phase 2, which will double the facility’s capacity to 28 million tonnes a year.
- When
- Last month, according to the article published on October 23, 2026.
- Where
- LNG Canada’s export facility is in Kitimat, British Columbia, Canada.
- Why
- To expand Canada’s potential as a long-term LNG supplier to Asian markets.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Expanded capacity
- 28 million tonnes a year
- Facility
- Kitimat, British Columbia
- Project partners
- Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS
- Expected Canadian LNG exports
- 33 million tonnes a year by the end of the decade
What people are saying
For Asian buyers, Canada offers something that is increasingly rare in global LNG markets: a combination of resource scale, Pacific Basin access and short shipping routes,
Canada's resource advantage is real, but realizing its full potential will depend on competitiveness, execution and timely project delivery.