Overview
- LNG Canada partners led by Shell approved the final investment decision on Tuesday, Sept. 29, 2026, to expand the Kitimat terminal and raise capacity from 14 mtpa to about 28 mtpa.
- Phase 2 will add two new liquefaction trains, an extra storage tank and condensate tank, a new loading berth and expanded utility and process systems at the existing footprint.
- The project requires upgrades to the 670‑kilometre Coastal GasLink pipeline, including construction of five new compressor stations to boost gas throughput to Kitimat.
- Partners say the build will cost tens of billions of dollars (reported around CAD30–33 billion), could employ several thousand workers at peak construction and aims to supply Asian customers while diversifying Canada’s export markets.
- The decision comes despite Phase 1 problems — including equipment failures and episodes of flaring above permitted volumes — and follows offers for some First Nations to take ownership stakes in storage infrastructure amid continuing environmental and community concerns.