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Shell and Mitsubishi are exploring the sale of their stakes in the C$40 billion LNG Canada project in Kitimat, British Columbia. Shell, holding a 40% stake, has consulted Rothschild & Co about potential buyers, possibly selling up to 30% of the project for around US$15 billion.

Mitsubishi, with a 15% stake, is working with RBC Capital Markets to evaluate options. Discussions are in early stages, with any transactions potentially starting later this year. This follows Petronas's partial stake sale to MidOcean in December.

LNG Canada is North America's first large LNG facility with direct Pacific access, and aims for 14 million tons of LNG per year. Operational issues have arisen, such as Train 2's shutdown shortly after commissioning.

The search for buyers reflects a common trend in infrastructure projects to release capital once operational. Sector-wide concerns about a global LNG supply glut may affect project timelines.