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Shell's LNG Canada Expansion Accelerates Under Carney's Priority List

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Key Takeaways

  • {\"0\":\"SHEL\'s LNG Canada expansion is fast-tracked as PM Carney puts it on the national priority list.\",\"1\":\"Project to double LNG capacity to 28M tons, potentially the second-largest terminal worldwide.\",\"2\":\"All the priority list projects promise $60B in investments, jobs and a stronger global energy supply chain.\"}

The expansion of Shell plc (SHEL - Free Report) -led LNG Canada project has taken center stage in Canada’s energy future, thanks to Prime Minister (PM) Mark Carney’s decision to designate it a fast-track national infrastructure project. The PM also aims to reduce the approval timeline for all the projects of national interest to a maximum of two years. The move is designed to expedite approvals and construction, cementing Canada’s position as a major LNG exporter and supporting economic growth amid global energy shifts.

The PM has listed the names of a total of five projects that he wants to be accelerated, perceiving them to be of national importance. Apart from LNG Canada, the other four projects include- the Darlington New Nuclear Project in Bowmanville, the Port of Montreal Contrecoeur expansion project, the McIlvenna Bay Foran Copper Mine Project in east-central Saskatchewan and the Red Chris Mine expansion in northwest British Columbia.

Doubling LNG Capacity for Global Reach

The LNG Canada project is a joint venture comprising Shell (40%), Malaysia’s Petronas (25%), Mitsubishi Corporation (15%), PetroChina (15%) and Korea Gas Corporation (5%). The project aims to double the LNG Canada facility’s annual export capacity from 14 million to 28 million metric tons. This scale could make it the world’s second-largest LNG terminal. Phase 1 commenced exports earlier in 2025, following a $40 billion investment, with Phase 2 now poised for rapid progress, backed by government prioritization and streamlined permitting.

Economic Impact & Job Creation

Carney emphasized that the expansion will help diversify energy exports beyond the United States, strengthen global LNG supply chains and deliver a wave of well-compensated job opportunities. Federal support remains focused on smoothing regulatory hurdles, while private investment forms the bulk of the financing. The project joins four other ventures that support Canada’s national interest, together expected to generate $60 billion in investments and transform Canada’s trade landscape.

Climate Challenges & Environmental Standards

Despite strong government backing, the expansion faces scrutiny over its alignment with national and provincial emissions targets. The LNG Canada consortium touts emissions expected to be significantly lower than global averages, but climate advocates caution that increased LNG output poses risks for Canada’s climate goals. Ongoing negotiations aim to ensure that the project maximizes both its climate and its economic benefits.

A Pivotal Moment for Canadian LNG

Shell’s LNG Canada expansion is a central plank of Ottawa’s strategy for construction, trade and energy security. Fast-tracking the project signals new urgency to counter U.S. tariffs, boost exports to Asia and expand infrastructure for the future. A final investment decision and further innovations in low-carbon LNG are in focus, while Canada positions itself as a global LNG powerhouse.

SHEL’s Zacks Rank & Key Picks

London-based Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Vitesse Energy, Inc. (VTS - Free Report) , Canadian Natural Resources Limited (CNQ - Free Report) and Enbridge Inc. (ENB - Free Report) . While Vitesse Energy sports a Zacks Rank #1 (Strong Buy) at present, Canadian Natural and Enbridge carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

New York-based Vitesse Energy is an independent energy company engaged in the acquisition, development and production of non-operated oil and natural gas properties principally in the United States. The Zacks Consensus Estimate for VTS’ 2025 revenues indicates 16.6% year-over-year growth.

Calgary-based Canadian Natural is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for CNQ’s 2025 revenues indicates 5.9% year-over-year growth.

Calgary, Alberta-based Enbridge is a leading energy infrastructure company engaged in the transportation of energy through the most extensive and advanced crude and liquids pipeline system. The Zacks Consensus Estimate for ENB’s 2025 earnings indicates 9.5% year-over-year growth.

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