LNG Canada could double Kitimat export capacity

The partners behind LNG Canada could decide as early as October whether to double the capacity of the massive liquefied-natural-gas terminal in Kitimat, according to Reuters. The proposed second phase would add another 14 million tonnes of annual production capacity, bringing the facility’s total to 28 million tonnes and significantly expanding Canada’s ability to export natural gas to Asian markets.

The Shell-led consortium also includes Malaysia’s Petronas, PetroChina, Mitsubishi Corporation and Korea Gas. LNG Canada’s approximately $40-billion first phase began shipping cargoes earlier in 2026, making it Canada’s first operating large-scale LNG export terminal. Its Pacific location provides a shorter route to major Asian buyers than many competing projects on the U.S. Gulf Coast, particularly when Panama Canal constraints affect shipping.

A final decision has not been made, and the partners must still satisfy their individual commercial, fiscal, regulatory and governance requirements. An investment vehicle representing five neighbouring First Nations has an option to invest as much as $1 billion in the expansion. LNG Canada says it hopes to reach a decision before the end of 2026, but Reuters reports approval could arrive considerably sooner as Asian demand and concerns about Middle Eastern supply security strengthen the project’s economics.