Kitimat – LNG Canada today announced that its Joint Venture Participants (JVPs) – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have taken a Final Investment Decision (FID) on the LNG Canada Phase 2 expansion project in Kitimat, British Columbia, in the traditional territory of the Haisla Nation. The decision marks the next step in LNG Canada’s development as a British-Columbia-based Project of National Significance, representing one of the largest private sector investments in Canada, building on LNG Canada’s Phase 1.
“LNG Canada Phase 2 is another nation-building investment that demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together with shared purpose. With FID secured, Phase 2 will double LNG Canada’s capacity from 14 to 28 million tonnes a year, putting LNG Canada on a trajectory to become one of the largest LNG facilities in the world and helping move Canada toward becoming one of the world’s top five LNG exporting nations,” said Chris Cooper, President and CEO, LNG Canada.
“But Phase 2 is about much more than tonnes. It will create thousands of jobs and further strengthen Canada’s role as a trusted energy partner, bringing more responsibly produced Canadian LNG to global markets while supporting long-term prosperity at home.”
“LNG Canada’s decision to move forward with Phase 2 is a massive vote of confidence in Canada, and proof that not only does Canada have what the world wants – but we can get big projects built to deliver on that,” said Tim Hodgson, Canada’s Minister of Energy and Natural Resources.
The Phase 2 expansion will add two additional LNG processing units, known as trains, within LNG Canada’s existing Kitimat facility, increasing total production capacity from 14 to 28 mtpa. Phase 2 includes an additional LNG storage tank, condensate tank, loading berth, expanded utility and process systems. LNG Canada has also entered into commercial agreements to act as execution manager, working with Coastal GasLink to expand the capacity of the existing 670-kilometre pipeline through the construction of five new compressor stations. Phase 2 builds on the current Phase 1 footprint and infrastructure that were designed and engineered from the outset to support the first large-scale, four-train LNG export facility in Canada.
On July 14, 2026, LNG Canada announced a landmark equity option agreement with MNT Investments LP, a limited partnership of the economic development organizations of five First Nations neighbouring LNG Canada’s operations: Gitga’at Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation and Kitsumkalum First Nation. Today’s Phase 2 decision enables the implementation of that equity option through an investment of up to $1 billion (CAD) in a special purpose entity that will purchase the future LNG storage tank to be built as part of Phase 2. The transaction represents one of the largest Indigenous ownership positions in major Canadian infrastructure.
Together with the Governments of B.C. and Canada, LNG Canada estimates Phase 2 has the potential to generate more than $50 billion in government revenues over the life of the project, including direct spend, taxes, royalties and other government revenues generated through direct and indirect economic activity associated with Phase 2. LNG Canada’s initial construction created significant employment opportunities in B.C. and across Canada with more than 50,000 Canadians contributing to the delivery of Phase 1, while the connecting Coastal GasLink (CGL) pipeline employed more than 25,000 Canadians.
(LNG Canada Photo)