VideoEnergy & Economy
LNG Canada Phase 2 gets the green light as exports to Asia set to double
Shell and four Asian partners approved doubling the Kitimat terminal to 28 million tonnes a year, shifting Canadian gas exports toward Asian buyers beyond the traditional American market.
Summary
On September 29, Shell and four Asian partners approved LNG Canada Phase 2 at Kitimat, B.C., doubling output from about 14 million tonnes a year to 28 million. Shell holds 40 per cent, the largest stake. The video calls this a final investment decision: the partners have stopped studying the project and started paying for it. Rather than building a new pipeline route, the venture plans five compressor stations on the existing 670-kilometre Coastal GasLink line.
Four of the five owners are Asian companies: Petronas, PetroChina, Mitsubishi and KOGAS. The video argues that this changes Canada's export map. For generations, Canadian gas had one road out, south to the American market, while Kitimat points tankers across the Pacific to Asian buyers. Energy Minister Tim Hodgson said the buyers understand the shipping distances, and the channel argues shared ownership ties foreign energy security to Canadian soil.
Both B.C. parties back the project in the run-up to the October 24 provincial vote. The Conservatives pledged to triple LNG production by 2035, and the NDP said its own plans would outpace that. The B.C. Greens call for a moratorium on LNG expansion, pointing to environmental risks and Indigenous rights concerns. Critics also cite flaring beyond permitted volumes at the plant.
Key points
- Phase 1 capacity is about 14 million tonnes per year; Phase 2 raises it to about 28 million.
- Shell holds 40%, the largest stake in LNG Canada, and four of the five partners are Asian energy companies.
- Expected private investment is $33 billion, according to the Major Projects Office.
- Coastal GasLink is a 670 km pipeline, with 5 new compressor stations planned along it.
- B.C. votes on October 24; both the NDP and the Conservatives support LNG growth.
- The B.C. Greens call for a moratorium on LNG expansion, while critics raise flaring and emissions concerns.
Questions answered
Where is LNG Canada Phase 2 being built?
LNG Canada Phase 2 is planned for Kitimat, British Columbia, on the North Coast. Shell and four Asian partners approved it on September 29. The expansion would double the plant's output to 28 million tonnes a year, with the gas bound for Asian markets.
Who owns LNG Canada?
Shell holds 40%, the largest stake. The other partners named are Petronas, Malaysia's National Energy Company, PetroChina, Mitsubishi Corporation of Japan, and the Korea Gas Corporation. Four of the five partners are Asian energy companies.
Does LNG Canada Phase 2 need a new pipeline?
No. According to the video, Kitimat doubles exports without a new pipeline route. Instead, LNG Canada is working with Coastal GasLink to build five new compressor stations along the existing 670-kilometre line, squeezing more capacity from the same corridor.
How is the B.C. election related to LNG?
Both of B.C.'s major parties, the BC NDP and the BC Conservatives, support LNG growth ahead of the October 24 vote. The Conservatives pledged to triple LNG production by 2035, while the Greens call for a moratorium on expansion.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work