LNG Canada Phase 2 Expansion, Kitimat, British Columbia

LNG Canada is doubling its Kitimat export plant. Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS took a final investment decision on Phase 2 on Sept. 28, 2026, and the JGC Fluor joint venture that built Phase 1 got notice to proceed the next day. Two more liquefaction trains would take capacity from about 14 million tonnes a year to about 28 million.

The site sits on Haisla Nation traditional territory at the head of Douglas Channel. Phase 1 started producing LNG in June 2025 and was handed over in October 2025, so Phase 2 goes up beside an operating plant.

Project Scope

JGC Fluor BC LNG II JV, owned equally by Fluor Canada and a JGC subsidiary, holds the engineering, procurement, fabrication, construction and commissioning scope. Fluor booked $7.5 billion as its half. JGC said the work is mostly lump-sum turnkey with some cost-plus portions, and neither firm has said how large those portions are. Bloomberg put total Phase 2 investment near $23 billion. The owners haven’t published a figure.

LNG Canada lists the package as two trains, an additional LNG storage tank, a condensate tank, a loading berth and expanded utility and process systems. Upstream, LNG Canada will act as execution manager for an expansion of the 670-kilometre Coastal GasLink pipeline that adds five compressor stations.

The storage tank has an unusual ownership path. Under a July 14, 2026 agreement, MNT Investments LP, representing five First Nations including the Haisla Nation, will put up to C$1 billion into a special purpose entity that will buy the tank.

Operations staffing grows too: about 90 full-time and 150 contractor positions on top of a permanent workforce of more than 400.

Why It Matters

Labor is the constraint to watch. LNG Canada expects up to 4,000 construction workers in Kitimat at peak and about 2,100 more on the compressor stations. Cedar LNG, a floating export terminal in the same port, is drawing on the same trades, camp beds and marine logistics, and Phase 1 alone employed more than 50,000 Canadians over its life.

For Fluor, the contract terms matter as much as the size. The company has spent recent years tilting its backlog toward reimbursable work, and 85% of it was reimbursable at June 30. This award moves a real slice back toward fixed price. The best argument that the risk is priced right is that the same JV just finished two trains inside the same fence.

Neither the owners nor the contractors have published a construction schedule or a first-LNG date for the new trains.

Project Team & Details