A Shell-led consortium has approved a $23bn expansion of the LNG Canada project, doubling its production capacity to 28mn tonnes a year. The decision, described as a “nation-building investment,” supports Prime Minister Mark Carney’s goal to boost energy exports beyond the US and reduce reliance on American markets. The project, located in western Canada, is expected to attract C$33bn in private capital and begin operations in the early 2030s.

Energy minister Tim Hodgson called the move a “massive vote of confidence in Canada.” The consortium includes Shell, Mitsubishi Corporation, Petro China, Kogas, and Petronas, with Mitsubishi estimating its share at $3.2bn, implying a total cost of $21.3bn. The expansion aims to supply Asia and Europe, enhancing energy security amid Middle East supply disruptions and rising global gas prices.

LNG Canada, already exporting since last year, faced delays and cost overruns in its first phase. The new phase is seen as critical for countries seeking alternatives to Russian gas and stabilizing energy markets during geopolitical tensions.