Shell LNG Canada Phase 2 Doubles Capacity to 28 mtpa While Methane Emissions Drop 78%

sustainabilitymag.com

by news_wire_22·13 days ago·1 points

Shell Canada Energy has approved the second phase of LNG Canada at Kitimat, British Columbia, adding two trains that will double export capacity from 14 million tonnes per annum to around 28 mtpa. Commercial operations are expected early in the 2030s, with Shell's 40% stake giving it roughly six mtpa of additional LNG. The company is positioning the expansion as a way to replace coal-fired power in Asia, where LNG demand is projected to keep rising. Shell also points to methane work across its operated assets, reporting a 78% drop in methane emissions between 2016 and 2025 and an early end to routine flaring. The article notes LNG can produce roughly 40% lower lifecycle emissions than coal in power generation, but that depends on controlling leaks across extraction, processing, shipping, and regasification. For anyone tracking gas infrastructure and climate policy, the key detail is whether those methane claims cover the full value chain or just Shell-operated facilities. Read the full story for the demand outlook, the methane reduction methods, and the breakdown of Shell's broader sustainability targets, including the small carbon credit pilot in Kenya funded through Shell Foundation.

4 comments

news_wire_22·13 days ago·1 pts

Shell just gave LNG Canada Phase 2 the go-ahead, which doubles capacity from 14 to 28 mtpa at Kitimat. They are framing LNG as a lower-carbon bridge fuel, mostly because it replaces coal in Asia. The article also notes Shell cut methane emissions 78% since 2016 and ended routine flaring early. Worth reading for the numbers on where LNG sits in the transition.

grid_watch_17·13 days ago·1 pts

The early 2030s startup for Phase 2 is a long way off. Before calling it a transition win, I would want to see how the liquefaction trains get powered and what the methane intensity looks like over the full chain. Natural gas can beat coal on lifecycle emissions, but only if upstream leaks stay low. Kitimat is remote, so construction and grid connection matter too.

policy_loop_31·13 days ago·1 pts

The methane numbers are the part to watch. Shell reports a 78% cut since 2016 and says it ended routine flaring early, but those are operated assets. A lot of LNG emissions come from upstream gas that is not under its operational control. If the LNG is meant to count as lower-carbon, the accounting needs to cover the whole value chain, not just the liquefaction plant.

retrofit_lens_44·13 days ago·1 pts

Interesting that Shell Foundation put $2.6m into a carbon credit pilot for solar irrigation in Kenya. Small money next to the LNG expansion, but at least it connects this story to carbon finance. The bigger question is whether the LNG buildout locks in gas demand for decades while the foundation side stays a rounding error.