Canada Fast-Tracks Shell-led LNG Canada Phase 2 Expansion in B.C.

Ottawa has referred Shell-led LNG Canada Phase 2 to the new Major Projects Office, fast-tracking the Kitimat expansion that will double LNG output and position Canada as a key supplier to Asia and Europe.

(P&GJ)  — Canada has placed the second phase of Shell’s LNG Canada project in Kitimat, British Columbia, under the review of its newly created Major Projects Office (MPO), the only oil and gas development to be referred so far, Canada's government announced on Sept. 11.

The MPO, launched in August by Prime Minister Mark Carney’s government, was designed to accelerate approvals for projects deemed critical to Canada’s economy. The office has the authority to streamline regulatory reviews, co-ordinate with provinces and Indigenous groups, and cut approval timelines to a maximum of two years.

LNG Canada Phase 2 would double the facility’s liquefied natural gas production, making it the world’s second-largest LNG plant. Ottawa said the expansion is expected to attract significant private-sector capital, boost GDP growth, and strengthen energy security for Asian and European buyers. Emissions are projected to be 35% lower than the world’s best-performing LNG facilities and 60% lower than the global average.

“These are the first of many projects to come, projects that will also ensure meaningful results, in partnership with the new Indigenous Advisory Council,” said Dominic LeBlanc, Minister of Intergovernmental Affairs.

The government said the MPO will close remaining regulatory gaps and secure financing structures for LNG Canada Phase 2 and other priority projects.

Alongside LNG Canada Phase 2, the MPO is also reviewing:

• The Darlington New Nuclear Project in Ontario, set to deploy Canada’s first small modular reactor.
• The Contrecœur Terminal Container Project in Québec, an expansion of the Port of Montréal.
• Two copper mining projects in Saskatchewan and British Columbia, aimed at boosting Canada’s supply of critical minerals.

Together, the first wave of MPO projects represents more than C$60 billion in planned investment and thousands of jobs nationwide, according to the government.

“At this moment of transformative change, Canada’s new government is focused on delivering major projects to connect our communities, empower Canadian workers, and build Canada’s strength,” Prime Minister Carney said. “With the first in a series of new projects, we will build big, build now, and build Canada strong.”