September 29, 2026
LNG Canada’s joint venture participants Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS have reached a Final Investment Decision on the LNG Canada Phase 2 expansion in Kitimat, British Columbia, advancing one of Canada’s largest energy infrastructure developments.
Located within the traditional territory of the Haisla Nation, Phase 2 will build on the existing LNG Canada facility and increase annual liquefied natural gas production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa.
The federal Major Projects Office identifies LNG Canada Phase 2 as a project of national significance and has previously estimated it could attract approximately $33 billion in private-sector capital.
Phase 2 will add two LNG processing units, known as trains, within LNG Canada’s existing Kitimat facility.
The expansion also includes another LNG storage tank, condensate tank and loading berth, along with expanded utility and process systems.
Phase 1 infrastructure was designed and engineered to support an eventual four-train LNG export facility, allowing Phase 2 to build upon much of the project’s existing footprint and infrastructure.
LNG Canada is currently owned by Shell Canada Energy (40%), PETRONAS through North Montney LNG Limited Partnership (25%), PetroChina Canada Ltd. (15%), Mitsubishi Corporation through Diamond LNG Canada Partnership (15%) and Kogas Canada LNG Ltd. (5%).
Additional natural gas transportation capacity will also be required.
LNG Canada says it has entered commercial agreements to act as execution manager while working with Coastal GasLink to expand capacity along the existing 670-kilometre pipeline.
The work is expected to include construction of five new compressor stations. LNG Canada and Coastal GasLink had previously announced an agreement to cooperate on expanding pipeline capacity to support Phase 2.
Construction represents one of the most significant components of the expansion.
According to LNG Canada, Phase 2 is expected to support up to 4,000 new construction jobs in Kitimat at peak activity, with approximately 2,100 additional jobs associated with construction of the new Coastal GasLink compressor stations.
The expansion is also expected to generate opportunities for skilled trades, contractors, suppliers and businesses throughout Northern British Columbia and the broader Canadian construction supply chain.
LNG Canada says more than 50,000 Canadians contributed to Phase 1, while construction of the Coastal GasLink pipeline employed more than 25,000 Canadians.
Following completion of Phase 2, LNG Canada expects to add approximately 90 permanent positions and 150 contractor roles to its Kitimat operations.
Phase 2 also enables implementation of an equity option agreement announced by LNG Canada in July 2026 with MNT Investments LP.
The limited partnership represents economic development organizations associated with Gitga’at Nation, GitxaaĹ‚a Nation, Haisla Nation, Kitselas First Nation and Kitsumkalum First Nation.
Under the arrangement described by LNG Canada, MNT Investments LP can invest up to $1 billion in a special-purpose entity that would purchase the future LNG storage tank constructed as part of Phase 2.
LNG Canada has described the arrangement as potentially one of Canada’s largest Indigenous ownership positions in major infrastructure.
LNG Canada estimates, together with the governments of British Columbia and Canada, that Phase 2 has the potential to generate more than $50 billion in government revenues over the project’s life through direct spending, taxes, royalties and related economic activity.
That figure is a project estimate rather than a guaranteed economic outcome.
The Final Investment Decision represents a major transition for LNG Canada Phase 2 from planning toward project execution. With two additional LNG trains, new storage and loading infrastructure, expanded process systems and additional Coastal GasLink compressor stations planned, the project is positioned to generate substantial construction activity and skilled-trades demand in British Columbia.
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