Key facts
- Mitsubishi Corp. and partners including Shell will double the production capacity of the LNG Canada project.
- The expansion will increase LNG Canada's capacity from 14 to 28 million tonnes a year.
- The project is expected to strengthen energy supplies for Asia.
- The Final Investment Decision for Phase 2 was announced by LNG Canada.
- The expansion includes two additional LNG processing units, a storage tank, loading berth, and utility systems.
- An equity option agreement with five First Nations involves an investment of up to $1 billion (CAD).
Japanese trading house Mitsubishi Corp. and its partners, including Shell, have announced a Final Investment Decision (FID) for the Phase 2 expansion of the LNG Canada project in Kitimat, British Columbia. This decision will double the facility's production capacity to 28 million tonnes per year, bolstering energy supplies for Asia, which is experiencing disruptions linked to the Iran war.
The expansion will add two new LNG processing units, known as trains, to the existing facility. It also includes an additional LNG storage tank, a condensate tank, a loading berth, and expanded utility and process systems. Furthermore, LNG Canada will collaborate with Coastal GasLink to increase the capacity of the 670-kilometer pipeline through the construction of five new compressor stations.
Canada's Minister of Energy and Natural Resources, Tim Hodgson, stated that the investment demonstrates Canada's ability to build large projects and reinforces its role as a trusted energy partner. The project is expected to create thousands of jobs and contribute significantly to government revenues over its lifetime.
In a significant move towards Indigenous partnership, LNG Canada has entered into an equity option agreement with the economic development organizations of five First Nations neighbouring the project. This agreement allows for an investment of up to $1 billion (CAD) in a special purpose entity that will purchase a future LNG storage tank, representing one of the largest Indigenous ownership stakes in major Canadian infrastructure.