The B.C. and Canadian governments have agreed to collaborate with LNG Canada in hopes of securing a final investment decision for Phase 2 by the end of this year.
The second construction phase of LNG Canada’s export terminal in Kitimat is among the projects on the federal government’s list of major projects for potential fast-tracking. It is estimated the project would double LNG Canada’s production of liquified natural gas by the early 2030s.
The provincial and federal governments and LNG Canada said Thursday they reached an agreement on “enhanced investment co-operation and actions” to help move the project toward a final investment decision in 2026.
LNG Canada is owned by a joint venture of Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.
The press release said the joint partners agreed earlier this month to approve hundreds of millions of dollars in incremental funding to help finalize work on a potential decision. The funds would go toward further engineering and planning, progressing agreements with First Nations, and construction work at LNG Canada’s marine offloading terminal.
Premier David Eby said in a joint press conference alongside federal Energy and Natural Resources Minister Tim Hodgson that the release of that funding marks a milestone for the proposed project.
“To us, the decision to release those hundreds of millions of dollars of investment moving towards final investment decision is a major vote of confidence in the project, in British Columbia and in Canada and the work we’ve done with the federal government,” said Eby.
Responding to the announcement on Thursday, the B.C. Greens criticized the NDP government’s support for the project and highlighted concerns about the health impacts of LNG flaring.
“This government’s continued fixation on LNG expansion is deeply troubling, misguided, and disconnected from what’s best for British Columbia’s future and the current realities of global energy markets,” said B.C. Green leader Emily Lowan.
