Shell Canada Energy announced it has reached final investment decision (FID) on its LNG Canada Phase 2 in Kitimat, British Columbia. Shell reports Phase 2 will double total production capacity at the Kitimat facility from 14 mtpa to 28 mtpa. Two LNG trains will be added to the facility, along with a new LNG storage tank, condensate tank, loading berth, and expanded utility and process systems. Coastal GasLink will expand the capacity of the existing 670-km pipeline through the construction of five new compressor stations.
The Kitimat facility is the first large-scale LNG export facility in Canada, with an annual production capacity of up to 14 mtpa in Phase 1.
Global engineering firm JGC Corporation and Texas-based engineering and construction firm Fluor Corporation received notice to proceed for Phase 2. The companies previously provided front-end engineering and design and engineering, procurement, and construction services for Phase 1.
Shell said the facility will supply cost-competitive gas to Asian markets, where demand for LNG is expected to increase significantly.
"LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important,” said Cederic Cremers, Shell’s Integrated Gas president.
Shell will receive approximately 6 mtpa of additional LNG from the expansion with commercial operations expected to begin in the early 2030s.
LNG Canada is a joint venture in which Shell holds a 40% interest, with partners Petronas (25%), PetroChina Company Ltd. (15%), Mitsubishi Corporation (15%), and Korea Gas Corporation (5%).