In a significant development for Canada's energy landscape, global energy titan Shell and Japanese conglomerate Mitsubishi Corp. are reportedly evaluating the potential sale of their respective holdings in the LNG Canada export terminal. The news, broken in an exclusive report by Reuters on January 16, 2026, signals a potential major shift in the ownership structure of the country's flagship liquefied natural gas project.
Evaluating Strategic Options for Major Holdings
According to sources familiar with the matter cited by Reuters, both companies are in the early stages of reviewing their strategic positions. Shell, which holds a 40% operating stake in the venture, and Mitsubishi, which holds a 15% stake, are said to be exploring a range of possibilities. This process involves engaging with financial advisors to gauge market interest and assess the value of their shares in the multi-billion dollar facility located in Kitimat, British Columbia.
The LNG Canada project is a cornerstone of Canada's strategy to become a global player in the natural gas market. The first phase of the terminal is currently under construction and is designed to export LNG primarily to markets in Asia. A potential divestment by two of its key founding partners would mark a pivotal moment for the project's future trajectory.
Potential Motivations and Market Context
While neither company has issued an official statement confirming a definitive decision to sell, the exploration of options is telling. Industry analysts suggest several factors could be at play. Major energy firms worldwide are under increasing pressure from shareholders to improve returns and focus capital on core strategic areas. For Shell, this could involve a sharper focus on its broader energy transition goals.
Furthermore, the global LNG market has seen significant volatility and shifting trade patterns in recent years. The exploration of a sale could be a strategic move to capitalize on the project's value at a key juncture, just as its operations are set to begin. Any sale process would attract close scrutiny from potential buyers, including other international energy companies, investment funds, and possibly pension funds seeking stable, long-term infrastructure assets.
Implications for Canada's Energy Sector
The potential change in ownership comes at a critical time. The LNG Canada project is not only a massive industrial undertaking but also a symbol of Canada's ability to execute large-scale energy exports. It has been hailed for its potential economic benefits, including job creation and government revenues, while also facing scrutiny over its environmental footprint.
A successful sale to new committed partners could ensure the project's continued development and financial stability. However, it also introduces an element of uncertainty regarding the long-term strategic commitment of the original consortium members. The remaining partners in the venture include PetroChina, which holds a 15% stake, and Korea Gas Corporation (KOGAS), with a 5% stake.
The Reuters exclusive underscores the dynamic and ever-evolving nature of the global energy investment landscape. As the world grapples with energy security and transition, the stakes in major projects like LNG Canada are subject to reassessment by even their most stalwart supporters.
