The Globe and Mail reports in its Wednesday edition that conversations with the federal and British Columbia governments have "raised the likelihood" of the LNG Canada export terminal expansion in Kitimat, B.C., says Wael Sawan, Shell's chief executive officer, with a decision on the project expected in the coming months. The Globe's Emma Graney writes that Mr. Sawan's comments follow Shell's announcement Monday that it is buying Calgary-based ARC Resources -- the largest pure-play producer in the Montney basin, which straddles Alberta and northeast British Columbia. The $16.4-billion (U.S.) deal will significantly boost Shell's holdings in the region, which is a crucial supplier of natural gas to LNG Canada. Shell holds a 40-per-cent share in the terminal, whose liquefied natural gas can reach Asian markets faster than most other North American suppliers. While there has been no final investment decision made on the second phase of the terminal, it is on the list of five projects that Prime Minister Mark Carney has said will be reviewed for fast-track approval under Ottawa's Building Canada Act. Mr. Sawan said Shell has been "growing in confidence in the posture" that the federal and B.C. governments have been taking.
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