Contractors who worked on the first phase of LNG Canada say they got the greenlight to begin preparations for the site’s proposed Phase 2 expansion.
Japan’s JGC Corp. and Texas-based Fluor Corp. said Tuesday they had received limited notice to proceed for the project in Kitimat, British Columbia.
LNG Canada’s international joint owners are expected to make a final investment decision by the end of this year.
“The LNTP enables us to initiate early planning and move forward with key activities to support a proposed Phase 2 final investment decision by LNG Canada,” said Pierre Bechelany, Fluor’s business group president of energy solutions.
Phase 2 is on the B.C. government’s list of priority projects and was referred by Prime Minister Mark Carney to the federal Major Projects Office for potential fast-tracking.
LNG Canada Phase 1 has the capacity to export 14 million tonnes of liquified natural gas per year, and began making its first shipments to Asia in June 2025.
The $33 billion expansion project would add two LNG processing trains to the site’s existing infrastructure. It’s expected to double LNG Canada’s production of LNG 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 this year.
They said the project’s joint partners had agreed to approve hundreds of millions of dollars in incremental funding to help finalize work on a potential decision.
Phase 2 is also reliant on a proposed expansion of the Coastal GasLink pipeline to deliver gas from northeastern B.C. The project would add six additional compressor stations to the current 670-kilometre line, doubling its capacity.
