Shell to double LNG Canada capacity

(Sharecast News) - Shell said on Tuesday that it has reached a final investment decision to double production capacity at the LNG facility in Kitimat, British Columbia.

LNG Canada is a joint venture comprised of Shell, Petronas, PetroChina Company, Mitsubishi Corporation and Korea Gas Corporation. The facility is operated by LNG Canada Development Inc.

Shell - which has the biggest interest in LNG Canada at 40% - said phase 2 will add two LNG processing units, known as trains, lifting total production to 28 million tonnes per annum (mtpa) from 14m. Shell will receive nearly 6 mtpa of additional LNG from the expansion, with commercial operations set to begin in the early 2030s.

The expansion will put LNG Canada on course to become one of the largest LNG facilities in the world, helping Canada to become one of the top five LNG exporting nations.

Cederic Cremers, Shell's integrated gas president, said: "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.

"Phase 2 supports Shell's strategic objective to be the world's leading integrated gas and LNG business by connecting Canadian resources with Shell's global LNG portfolio, trading capability and customer reach."

Petronas has a 25% interest in LNG Canada, while PetroChina and Mitsubishi each have a 15% interest and Korea Gas Corporation 5%.