Shell and its partners have sanctioned a $23 billion expansion of the LNG Canada terminal in Kitimat, doubling export capacity to 28 million metric tons a year and handing Prime Minister Mark Carney a tangible win in his push to recast Canada as an energy superpower.
The decision and the numbers
The final investment decision announced Tuesday lifts the project from its current 14 million metric tons per annum to roughly 28 million, with commercial operations targeted for the early 2030s. Shell holds a 40 percent stake; the remainder sits with Petronas, PetroChina, Mitsubishi Corp and Korea Gas Corp. Ottawa has previously estimated the full project will draw 33 billion Canadian dollars in private capital.
Geopolitics as tailwind
The move arrives as the U.S.-Iran war disrupts global gas flows and buyers aligned with Ukraine scramble to replace Russian volumes. Kitimat’s Pacific coast location positions it to feed Asian markets directly. Shell’s integrated gas president, Cederic Cremers, said Phase 2 connects Canadian resources to the company’s global portfolio and trading reach at a moment when diversity of supply and energy security are increasingly important.
Carney’s superpower narrative
Carney campaigned in 2025 on turning Canada into a global energy superpower and has used the file to signal Ottawa’s reliability while a trade feud with the Trump administration simmers. LNG Canada called the investment “nation-building” and said it strengthens Canada’s role as a trusted partner. The government has not released updated job figures since the FID.
Market reaction
Shell’s London-listed shares slipped about 1 percent on the day of the announcement. The stock remains up more than 32 percent year to date.