Shell’s western Canada LNG expansion will be decided by 2025

A massive liquefied natural gas (LNG) export terminal in Western Canada built by Royal Dutch Shell and its partners will decide by 2025 whether to double its capacity. Last October, the CAD $31 billion project became the first major project in five years to be approved, with first exports planned for 2025.

Andy Calitz, LNG Canada chief executive officer, said a final investment decision (FID) on phase 2 will happen before the plant's initial production starts. The second phase of the project will include two new processing lines known as trains that will double the plant's capacity to 28 million tonnes of LNG per year. In an interview at the CERAWeek conference by IHS Markit, Mr. Calitz said, "We want to take FID on phase 2 before LNG flows from phase 1. (The partners) want to have some insight overall on the project before FID."

The partners on the project are Malaysia’s Petronas, PetroChina, Korea Gas Corp, and Mitsubishi.

Once the LNG Canada project was approved, other LNG projects have been approved in the U.S. Gulf Coast and off the coast of Mauritania and Senegal as producers expect a sharp rise in gas demand, particularly in Asia.