Reports that a partner in the LNG Canada project may sell part of its stake have not affected negotiations over a potential Phase 2 expansion, company officials said Monday.
In mid-January, several reports said Shell and Mitsubishi were exploring options to sell portions of their stakes in the LNG Canada project. No deals have been finalized.
On Monday, LNG Canada representatives were before the Kitimat council to give a presentation, during which they were asked to address the latest reports that Shell was looking at selling a portion of its ownership stake in the LNG Canada liquefied natural gas project.
LNG Canada Deputy Chief Operating Officer Teresa Waddington said the reports have not influenced the negotiations for a Phase 2 expansion.
“I’m afraid I can’t speculate on Shell and what they may or may not do,” Waddington told council. “What I will say is our joint venture participants continue to evaluate phase two.”
Waddington said the reports do not change the timeline or process currently underway as partners study the potential expansion.
“We expect them to be continuing to evaluate that decision based mainly on competitiveness,” she said.
LNG Canada is currently operating the first phase of the facility, which began shipping liquefied natural gas in 2025. The project is one of the largest private-sector investments in Canada’s history, with the main goal of exporting LNG to Asian markets.
However, as Waddington noted, the final decision on whether the facility proceeds with Phase 2 will depend on broader market trends and how the facility compares with competing projects around the world.
LNG Canada is a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corporation and Korea Gas Corporation. The partners are closely monitoring trends in the energy sector as they plan the project’s future.
