Shell’s next growth chapter is taking shape around a familiar strategy: connect new resources to infrastructure it already owns. During its Q3 2026 earnings call, the company highlighted a project pipeline spanning Canadian LNG, offshore oil and potential Caribbean gas developments.
Shell’s two major September developments mark strategic milestones in its resumption of upstream growth after an extended reshaping of its portfolio since 2020. Today, we analyze Shell’s upstream strategy since then, which has taken a different path from fellow supermajors ExxonMobil and BP.
For decades, the major integrated oil companies have been judged by their global scale, diversified business models and shareholder returns. But are their U.S. upstream businesses competitive? Today, we provide answers that may surprise many investors.
Fluor Corporation announced on June 1 that its joint venture with JGC Corporation, JGC Fluor BC LNG II, received a Limited Notice To Proceed” (LNTP) for the proposed Phase 2 expansion of LNG Canada.
Shell’s Q1 2026 earnings call made clear that the ARC Resources acquisition – as discussed in ‘Closer to the Heart’ is now the centerpiece of the company’s long-term North American gas and LNG growth strategy.
Shell’s plan to acquire Western Canadian E&P ARC Resources Ltd. affirms the global energy giant’s new strategic focus, enhances the prospects for Phase 2 of LNG Canada, and supports the view that the Montney Shale may be replacing the Permian as the epicenter of oil and gas M&A.
ARC Resources reported its Q1 2026 results on April 28. Overall production of 418.5 MBoe/d was up 2% relative quarter-over-quarter (Q/Q), as natural gas volumes grew by 9% to 1.53 Bcf/d while Oil and NGLs production fell 6% to 163.0 Mb/d.
ARC Resources, one of the largest Montney producers in Western Canada, announced an agreement to be acquired by Shell. ARC has four times the Montney production that Shell has, including over 800 MMcf/d of natural gas production in British Columbia, which would go along way to providing Shell with its ~840 MMcf/d of required feedstock for Phase 2 of LNG Canada, should Phase 2 get the green light. The deal would also bolster Shell's condensate-rich Montney drilling inventory, as ARC is one of the largest condensate producers in Canada.
Nashville is known for its music, but it’s also a fast-growing gasoline and diesel market, uniquely positioned between the Gulf Coast and Midwest. With major development projects planned, such as the new Tennessee Titans stadium, it’s getting to be a tight squeeze for the area’s fuel terminals.
TC Energy announced that Coastal GasLink (CGL) and the LNG Canada have agreed to commercial terms with respect to Phase 2 of the CGL pipeline, a key milestone to advancing the project to FID. Phase 2 would double the pipeline's current capacity of approximately 2.1 Bcf/d to deliver feed gas from northeast British Columbia to the Shell-operated LNG Canada export facility on Canada's west coast at Kitimat, B.C. Phase 2 would be developed in conjunction with a doubling of the LNG Canada facility's current export capacity of 14 MMtpa. Among other things, the commercial agreement has LNG Canada leading construction of CGL Phase 2. TC Energy is the operator of the Coastal GasLink pipeline, while Shell is the operator of the LNG Canada facility.
