Shell's LNG Canada Expansion Gets Green Light as Michigan Antitrust Case Falls Flat
Published on 09/29/2026 at 16:01 | Editorial boerse-global.de
Shell and its partners have pulled the trigger on the second phase of the LNG Canada export complex in Kitimat, British Columbia, ending months of speculation about whether the consortium would commit to doubling the facility's capacity. The final investment decision, announced Tuesday, clears the way for two additional liquefaction trains that will lift output from 14 million to roughly 28 million tonnes per annum.
Ottawa puts the private capital outlay for the build-out at about CAD 33 billion, or some USD 23.2 billion. Shell anchors the venture with a 40% stake, followed by Malaysia's Petronas at 25%, PetroChina and Mitsubishi at 15% each, and South Korea's Kogas holding the remaining 5%.
Pipeline Work and Engineering Contracts
The expansion package includes five new compressor stations along the 670-kilometre Coastal GasLink pipeline to keep feedstock flowing to the coast. A joint venture between US engineering firm Fluor and Japan's JGC has been awarded the engineering, procurement and construction contract, with Fluor's share valued at USD 7.5 billion.
For Shell, the approval translates into a meaningful boost to its trading book. The company expects the added trains to contribute close to 6 million tonnes of LNG per year to its volumes. Analysts point to steadily rising demand from Asian buyers as the chief rationale behind the partners' decision to proceed.
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Not everyone is cheering. Environmental groups, including Stand.earth, have flagged ecological concerns and warned that the project could run into economic trouble if global gas supplies swing into surplus.
Trinidad Settlement and Market Warnings
The Canadian decision lands alongside other moving pieces in Shell's gas portfolio. On 23 September, the company and Trinidad and Tobago's National Gas Company settled terms for gas deliveries from the Aphrodite field, resolving a pricing dispute that had held up the project. First production is targeted for the second quarter of 2027.
Shell and Equinor executives sounded a cautionary note on 16 September, warning of a prolonged stretch of tight supply and persistent price volatility across energy markets. Their central concern: the industry's diminishing ability to offset potential disruptions in the Middle East.
Michigan Lawsuit Dismissed
Shell also caught a break on the legal front. On 23 September, US District Judge Jane Beckering threw out an antitrust suit brought by the state of Michigan against Shell, BP, Chevron, Exxon and the American Petroleum Institute. The judge ruled that Michigan lacked standing to bring the claim under antitrust law, removing a legal overhang from Shell's US operations.
Commercial operations at the expanded Kitimat facility are slated for the early 2030s. Over the project's full life, the Canadian government expects to collect roughly CAD 50 billion in revenue.
Trading in Shell shares was muted following the announcement. The stock slipped 1.5% to EUR 41.84 on Tuesday, leaving it just below the 52-week high of EUR 42.99 touched only a day earlier.
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