Shell plans to double the production capacity of its Canadian liquefied natural gas project in British Columbia, Canada, to 28 million tons per year.

British energy giant Shell announced that it will double the production capacity of its liquefied natural gas (LNG) project in British Columbia, Canada, betting on the continued growth in natural gas demand in Asia.

Shell stated on Tuesday that it will build two additional liquefaction plants, doubling the total project capacity to 28 million tons per year.

This investment of several billion dollars in projects along the Pacific coast will help Shell export more natural gas to Asia. Population growth and data centers that consume large amounts of electricity are driving up the demand for natural gas in the Asian region.

This investment is another major boon for Canada. Canadian Prime Minister Justin Trudeau has been committed to elevating the country's status and transforming Canada into a more influential energy superpower. Although Canada is rich in resources, its past regulatory system has constrained the export capacity of its oil and gas industry. Now, the Canadian government is making great efforts to simplify the approval process for such infrastructure projects and introducing investment incentive policies.

Shell predicts that by 2050, the global annual demand for liquefied natural gas (LNG) will approach 700 million tons, an increase of 65% from the 2025 level.

Previously, a number of new projects were launched in the United States and around the world, and there were concerns in the market that an oversupply was on the horizon. However, the conflicts in the Middle East have changed the short-term supply and demand dynamics. With the Strait of Hormuz nearly blocked, coupled with damage to liquefied natural gas facilities in the Gulf region, the market's fears of an oversupply have likely been postponed.

Liquefaction plants cool natural gas to approximately minus 162 degrees Celsius, reducing its volume by about 600 times to convert it into a liquid state. The liquefied natural gas is then transported around the world by ships and re-gasified at receiving terminals.

Compared to coal, liquefied natural gas (LNG) is cleaner; moreover, it offers an advantage in terms of energy security over pipeline natural gas. After Russia's full-scale invasion of Ukraine in 2022, Europe abandoned Russian pipeline natural gas and began to purchase more and more American LNG.

Shell holds a 40% stake in the Canadian liquefied natural gas project. The company stated that after the expansion is completed, Shell will be able to obtain an additional nearly 6 million tons of liquefied natural gas per year. The first shipment of liquefied natural gas from this project was exported in June 2025, and the newly expanded facilities are expected to enter commercial operation in the early 2030s.

Other partners of the project include Malaysia National Petroleum, China National Petroleum Corporation, Mitsubishi Corporation, and Korea Natural Gas Corporation.