UK major Shell and Japanese trading house Mitsubishi are reported to be weighing partial sales of their holdings in the LNG Canada export venture in Kitimat, a liquefaction project valued at about C$40 billion, or roughly US$28.77 billion. Together, the two companies hold around 65% of the project’s equity.
The LNG Canada facility started shipping LNG in June 2025. Since start-up, however, the plant has faced technical and operational issues, and its second liquefaction train was taken out of service in early December. The first two trains are designed to deliver about 14 million tonnes of LNG per year, while a proposed expansion phase is intended to lift overall capacity to roughly twice that figure.
According to Reuters, Shell is the largest shareholder in LNG Canada with a 40% interest and, in recent weeks, has engaged investment bank Rothschild to sound out potential buyers. The UK player is said to be open to selling as much as 30 percentage points of its project interest, which would equate to around 75% of its current stake.
The company is also reported to be examining different ways of structuring its participation in the operating first phase of LNG Canada and in the planned second phase, reflecting the distinct risk exposure associated with each stage of the development. An investor acquiring Shell’s interest would face a total financial commitment of roughly US$15 billion once the equity portion, related debt, and capital spending for Phase 2 are taken into account.
Japanese partner Mitsubishi, which holds a 15% stake in LNG Canada, has reportedly appointed RBC Capital as adviser while it reviews options for its shareholding. The report noted that it remains unclear what proportion of Mitsubishi’s interest might ultimately be offered to potential buyers.
Reuters also highlighted that LNG Canada benefits from a supply cost edge, as Canadian gas prices typically sit below those at the US Henry Hub pricing point.
Shell has declined to comment on the possible sell-down. Calls to Mitsubishi’s media contact line were not answered before the article went to press. The remaining partners in the LNG Canada joint venture are Petronas, Kogas, as well as PetroChina.
