On Sept. 29, Shell (SHEL) announced the partners in the LNG Canada project will move forward with a Phase 2 expansion. The final investment decision (FID) will expand Canada’s role as an LNG supplier during a period of tightness in the global market.
Phase 2 will double production capacity to 28 Mtpa (an additional ~1.84 Bcf/d) at the LNG facility in Kitimat, British Columbia. The expansion will add two trains with an expected in-service date in the early 2030s, Shell said.
LNG Canada is backed by multiple Asian energy companies including PETRONAS (25%), PetroChina (15%), Mitsubishi (15%) and Korea Gas (5%).
To meet the gas supply needs for LNG Canada, TC Energy (TRP) also announced FID on Coastal GasLink Phase 2. The project will nearly double the pipeline’s capacity from 2.1 Bcf/d to ~4 Bcf/d by adding new compressor stations and upgrading facilities along the path to the LNG Canada liquefaction facility.
East Daley Analytics monitors LNG Canada monthly flows in the Canada Macro Supply & Demand report. After ramping, Phase 1 of LNG Canada has averaged 80% utilization so far in 2026 (~1.47 Bcf/d).
Canada is building out LNG facilities to take advantage of growing international demand. Shell projects global LNG consumption will increase from 422 Mtpa (~56 Bcf/d) to 700 Mtpa (~93 Bcf/d) by 2050.
For Canada’s gas industry, LNG Canada Phase 2 represents another major source of structural demand. The additional 14 Mtpa of LNG export capacity, supported by the Coastal GasLink expansion, will provide growing Montney supply with additional access to global markets while reducing Canada’s reliance on pipeline exports to the US. – Alec Gravelle Tickers: SHEL.
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How Will Data Centers Affect Development in the Permian Basin?
Data centers are adding significant, non-intermittent demand for natural gas. What could that mean for Permian production and infrastructure?
Join East Daley on Oct. 28 at 10 am MT for a look at how growing gas demand could reshape the region’s natural gas, crude oil and NGL markets.
We’ll cover:
- Natural gas: Permian demand is growing from Gulf Coast pipeline expansions and gas-fired power generation supporting data centers. The basin could very become short gas – a strange paradox for a basin that has been notoriously constrained in the past.
- Crude: As gas demand and egress capacity grow, producers could shift toward gassier windows in the Delaware and Midland basins, producing more associated gas alongside lower oil volumes. We’ll consider how that could ease crude egress pressure, and how much new oil pipeline capacity might be needed beyond potential brownfield expansions.
- NGLs: Higher Waha prices could encourage more ethane rejection, while new very large ethane carriers (VLECs) are expected to be built over the next several years. We’ll explore the tug-of-war between rejection at the wellhead and growing demand at the dock — and what it could mean for ethane production.
Register now before spots fill up to hear East Daley’s analysis of the infrastructure and production shifts shaping the Permian.
One Market, One Model: Gain a Holistic View of North America Supply & Demand
East Daley Analytics is pleased to announce the Canada Supply & Demand report. The Canada S&D completes our North American model, providing a fully integrated supply and demand forecast for crude oil and natural gas. East Daley follows molecules from Canadian production through US infrastructure to end-markets. Clients now have a continental view to anticipate trends, from how Canadian gas is reshaping Midwest markets, to how crude imports flow to Gulf Coast refiners. The Canada S&D report and dataset is available exclusively in Energy Data Studio. Reach out to learn more about East Daley’s North American energy model.
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