LNG

Tanzania expects to finalise agreements for its long-delayed $42 billion LNG export project in the coming months, Finance Minister Khamis Mussa Omar said, in the clearest signal yet that the country’s flagship energy development may be nearing completion.

Shell has awarded OceanMight an engineering, procurement and construction (EPC) contract for structures linked to gas field off Sarawak with a view to sourcing new feedgas for Malaysia’s existing processing and LNG infrastructure.

Shell – and its partners PETRONAS, PetroChina, Mitsubishi and KOGAS – have taken a final investment decision (FID) on the second phase of LNG Canada, approving a C$33 billion expansion that will double the British Columbia export terminal’s production capacity to 28 mtpa.

The project will add two liquefaction trains at the Kitimat facility, raising total capacity from 14 mtpa. Commercial operations are expected to begin in the early 2030s, Shell announced today.

FID on the second phase of LNG Canada marks a major expansion of the country’s LNG industry, with the Shell-led project being the country’s first large-scale LNG export project – positioned on the Pacific coast to supply customers in Asia.

Shell owns 40% of LNG Canada and expects to receive nearly 6 mtpa of additional LNG from Phase 2. The other partners are Malaysia’s Petronas, with a 25% stake; PetroChina, with 15%; Japan’s Mitsubishi Corporation, with 15%; and Korea Gas Corporation, with 5%.

Project partners’ approval comes as LNG producers and buyers prepare for a period of strong growth in global liquefaction capacity. New projects in North America and elsewhere are expected to add substantial supply during the late 2020s and early 2030s.

LNG Canada’s first phase comprises two trains with combined capacity of 14 mtpa. The facility began operations in 2025 and has since shipped more than 100 cargoes. Phase 2 will use existing infrastructure and site layouts designed to accommodate the additional trains. The expansion will include an additional LNG storage tank, a condensate tank and loading berth, as well as expanded utility and process systems.

To secure a stable flow of feedgas, LNG Canada partners also agreed to work with Coastal GasLink to expand the existing 670-kilometre pipeline through the addition of five compressor stations.

British energy major Shell and Trinidad and Tobago’s National Gas Company (NGC) have agreed commercial terms for gas supplies from Shell’s offshore Aphrodite field, ending a pricing dispute that had stalled the Trinidad LNG export project.

Shell estimates the war involving Iran has removed 36 mtpa shortfall of LNG supply from the Middle East, President for Integrated Gas Cedric Cremers said at Gastech, while Oman sought to downplay shipping disruptions through the Strait of Hormuz as “temporary.” Around 20 mtpa of the lost supply had been offset by new production, predominantly from North America – implying there is still a 16 mtpa gap in the global LNG markets.

Norway’s state energy company Equinor is considering reviving the long-stalled Tanzania LNG project with Shell, as disruption to shipments through the Strait of Hormuz could continue into the fourth quarter of this year, or possibly extend to 2027.

A record wave of LNG capacity coming online by 2030 is shifting the market’s binding constraint from supply to demand, with small-scale LNG (SSLNG) increasingly viewed not just as a niche segment but as a demand-creation tool.

Shell has reported adjusted earnings of $10.8 billion for Q2-2026, more than double the $3.6 billion posted a year earlier, as surging LNG and oil trading profits offset a sharp production decline caused by conflict-related disruptions in Qatar.

Egypt is close to sealing a multi-year LNG supply deal that could lock in 15 to 18 cargoes a month for at least three years. Reuters calculations put the deal value at $8-11 billion a year, depending on pricing and volume, with final terms still under negotiation.

Shell has reached financial close on a small-scale LNG regasification terminal in the Bahamas. The project will be built in phases, with the regasified LNG – mostly sourced from Shell’s US LNG offtake – set to support baseload generation at Clifton Pier in excess of 170 MW.