Shell has taken a final investment decision on the second phase of its LNG Canada project, doubling its capacity to 28 million tonnes a year.

The announcement, made on September 29, expands one of the world’s largest liquefied natural gas projects. Phase 2 will double output from 14 to 28 million tonnes per annum, with commercial operations expected in the early 2030s.

Shell holds a 40 per cent stake in the project, located in Kitimat, British Columbia. Cederic Cremers, Shell’s integrated gas president, said the expansion is expected to deliver double-digit returns.

The project supplies LNG mainly to Asian markets. Supporters say Canadian LNG shipped across the Pacific has lower shipping emissions than supplies from the US Gulf Coast.

The expansion comes as global LNG demand continues to grow, driven by Asia’s energy needs. Shell has positioned natural gas as a bridge fuel in the energy transition, though climate groups criticise continued fossil fuel investment. The company said the project will create thousands of construction jobs in British Columbia.