Japan’s Mitsubishi Corp. aims to secure a final investment decision (FID) “at an early date” for expanding and potentially doubling LNG Canada’s 14 million mt/year production capacity, according to Masaru Saito, executive vice president and CEO of the company’s Environmental Energy Group.
“The key is whether we can firmly reach the FID, which we will carefully assess,” Saito told Platts, part of S&P Global Commodity Insights, in an interview in Tokyo on Feb. 28.
Mitsubishi holds a 15% stake in LNG Canada, which is in the final stages of construction and on track to begin production by mid-2025. Saito emphasized that the company is working closely with contractors to meet this timeline and, if possible, start production ahead of schedule.
LNG Canada: A Key Asset for Global Gas Markets
The Shell-led LNG Canada project, located in Kitimat, British Columbia, will establish Canada as a major LNG supplier, leveraging the country’s vast gas reserves.
“Phase 1 is just the beginning,” Saito said. “LNG from Canada will be competitive, supported by upstream gas assets and an extremely low greenhouse gas (GHG) emission rate—about half that of conventional LNG.”
He also highlighted the strategic location of LNG Canada, which allows direct access to the Far East market via the West Coast without the need to transit the Panama Canal.
Mitsubishi is actively evaluating Phase 2, which could add another 14 million mt/year of production capacity, utilizing shared infrastructure from Phase 1 to enhance cost efficiency.
Expanding Global LNG Footprint
Mitsubishi’s LNG Canada expansion aligns with its broader strategy to increase equity LNG production to around 18 million mt/year by the early 2030s, up from the current 13 million mt/year.
“Given the surge in EPC [engineering, procurement, and construction] costs and inflationary challenges for new LNG developments, we are prioritizing expansion of existing assets,” Saito said.
This includes:
- Cameron LNG expansion (U.S.) – Mitsubishi is closely monitoring the EPC market and inflation in the U.S. before committing to further investment.
- Browse LNG (Australia) – The company is advancing development of the Browse upstream gas project, aiming to connect it to the existing North West Shelf infrastructure.
Navigating a Changing Energy Landscape
Global natural gas demand is expected to rise, fueled by the growing power needs of AI-driven data centers and increasing coal-to-gas switching in emerging markets.
Recent forecasts from Shell suggest that more than 170 million mt of new LNG supply will be available by 2030 to meet demand, particularly in Asia.
Mitsubishi sees Australia as a critical LNG supplier due to its proximity to Northeast Asia. Japan remains the largest importer of Australian LNG, sourcing 25.14 million mt in 2024, or 38.2% of its total imports.
With Australia’s Safeguard Mechanism now requiring large industrial emitters to offset CO2 emissions, Mitsubishi is evaluating carbon capture and storage (CCS) solutions to ensure compliance while maintaining project viability.
Strategic Energy Outlook
Japan’s newly approved Strategic Energy Plan projects the country’s natural gas demand at 53 million-74 million mt/year by FY 2040-41, with LNG playing a crucial role in the energy transition.
Saito emphasized that while nuclear and renewables are central to decarbonization, LNG will remain essential for balancing economic feasibility and energy security.
“We must carefully assess how actual demand evolves under different scenarios,” he said. “Each scenario presents its own supply-demand gaps, and our focus is on positioning LNG competitively within this evolving landscape.”
Mitsubishi is now pushing forward with environmental approvals and front-end engineering design (FEED) for its key LNG projects, aiming to secure long-term energy supply while maintaining cost competitiveness in an evolving global market.