Companies account for 65% of the stakes in the LNG Canada liquefaction project, with Shell and Mitsubishi exploring potential sales of portions of their holdings.

Shell's Stake and Divestment Plans

Shell, the largest equity holder with a 40% interest, is working with Rothschild to identify potential buyers. The company could divest up to three-quarters of its holding, equivalent to a 30% interest. Shell is considering different options for its stake in the operational Phase 1 and the proposed Phase 2, acknowledging the differing risks involved. A buyer for Shell's stake could face a total commitment of around US$15 billion, encompassing the equity stake, debt, and capital requirements for Phase 2.

Mitsubishi's Stake Review

Mitsubishi, which holds a 15% stake, has hired RBC Capital to weigh its options. It is unclear how much of its stake the company might market.

Project Status and Details

The C$40 billion (US$28.77 billion) LNG Canada project started production in June 2025 but has since faced technical and operational problems, including the shutdown of liquefaction Train 2 in early December. Located in Kitimat, British Columbia, the project's initial two trains have a nameplate capacity of 14 million tonnes per annum of LNG, with plans to double that capacity in a second development phase. The project benefits from a supply cost advantage as Canadian natural gas prices consistently trade at a discount to the US Henry Hub benchmark.

Company Responses and Other Partners

Shell declined to comment on the matter, while Mitsubishi’s media enquiry line was unanswered. The other partners in the consortium are Petronas, Kogas, and PetroChina.