BURSTShell and Mitsubishi are reportedly exploring the sale of their stakes in the LNG Canada project, opening the door to potential changes in the project’s ownership structure. While no deals have been finalized, the development raises questions about how any shift could influence future decisions affecting operations, employment, or contracting in Kitimat.
According to a Jan. 16, 2026 report from Reuters, Shell—holder of a 40 per cent interest in LNG Canada—is considering selling up to three-quarters of its stake, equal to 30 per cent of the overall project. The company has engaged Rothschild & Co. to manage the process. Mitsubishi, which owns a 15 per cent share, is also reviewing its options and has retained RBC Capital Markets, although any sale effort is not expected to begin until later this year.
One source told Reuters a buyer for Shell’s share could be committing roughly $15 billion, factoring in equity, debt, and capital required for Phase 2 which would double the size of the current facility.
To date, LNG Canada has not addressed what local impacts—if any—might arise from a change in ownership. The Northern Sentinel asked whether such a shift could affect day-to-day operations, local jobs, contracting, or production plans. The company declined to respond directly.
“We will not comment on or validate speculation about our joint venture participants,” an LNG Canada spokesperson said.
The Northern Sentinel has reached out to Shell and Mitsubishi for comment.
However, a UBC expert says that while day-to-day operations in Kitimat are unlikely to be affected in the short term, the long-anticipated expansion—Phase 2—may be in jeopardy.
“I don’t expect any significant changes that would affect local operations,” said Werner Antweiler, associate professor and chair of both the Strategy and Business Economics Division and International Trade Policy at the UBC Sauder School of Business. “But what it will do is affect decisions on new projects.”
That includes Phase 2 of LNG Canada which, if it goes ahead, would bring a surge of contracting and employment to the region reminiscent of what Kitimat, Kitamaat Village and the area experienced with Phase 1.
“What I see between the lines, now that they’re trying to sell those shares, is they’re not interested in putting in more money [to Phase 2],” Antweiler said.
“The LNG market is thinning out and is oversupplied over the next few years,” he said, adding that if companies are stepping back from LNG Canada, it may signal that expected profit margins are not meeting expectations.
Unlike LNG Canada, Cedar LNG, a floating barge facility now under development and much smaller than LNG Canada, will use electricity for liquefaction rather than direct-drive turbines, changing its cost structure.
While Antweiler did not make predictions about Cedar’s prospects, he said the LNG market is increasingly crowded.
“Even if a project goes ahead, it could still falter when the investors aren’t coughing up the money to proceed.
“The margins of exporting to Asia aren’t very large,” he said.
He pointed to several LNG projects in Australia and the U.S. that have delayed final investment decisions, even as the B.C. government robustly cheers on the prospect of an enlarged LNG Canada, Cedar LNG, and the planned Ksi Lisims LNG floating facility off of the north coast.
“There is an increasing sense that we are heading into an LNG glut… I don’t see LNG Canada Phase 2 going ahead at this point,” Antweiler said.