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Shell-Led Consortium Greenlights C$33 Billion Phase 2 at Kitimat LNG Terminal

Ottawa calls the decision a nation-building move that will draw private capital, create thousands of construction jobs, strengthen export links to Asia, and require major pipeline upgrades.

Overview

  • The project partners issued a final investment decision on Sept. 29, 2026, committing about C$33 billion to add two liquefaction trains and raise Kitimat’s output from 14 mtpa to roughly 28 mtpa.
  • Construction will begin promptly with commercial operations targeted in the early 2030s and Coastal GasLink set to add new compressor stations to nearly double pipeline throughput.
  • The federal government and provincial officials framed the expansion as a strategic push to diversify exports, attract private investment and deliver up to about 4,000 peak construction jobs in Kitimat.
  • Indigenous involvement includes an offered option for five First Nations to buy roughly $1 billion of new storage infrastructure, while critics highlight repeated equipment failures and excessive flaring at Phase 1 that raise emissions and community health concerns.
  • Analysts warn of economic and market risks such as rising input and construction costs, a surge of new global LNG capacity to 2030, and the possibility that long-term demand or ownership stakes could shift as the project scales.