Canada LNG project: seven questions for phase two after investment decision
The first phase of the Canada LNG project has become an operating asset since its first cargo was exported in June 2025, while the second phase faces a set of questions following the final investment decision announced by shareholders led by Shell. The second phase aims to add two new units to the Kitimat facility in British Columbia, raising the project's export capacity from 14 to about 28 million tonnes per year. Investment conditions differ from the first phase, with higher construction and financing costs, a changed ownership structure, the possibility of global oversupply and the trade war between the United States and Canada.
Why it matters: The expansion's cost, supply and market risks place it within the briefing's energy security theme, since the project's output and financing depend on North American gas supply, pipeline capacity and tariff conditions.