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6 min ago 3 min read
LNG Canada and its joint venture partners have reached final investment decision (FID) on the Phase 2 expansion in Kitimat, British Columbia, which will double its liquefied natural gas (LNG) capacity from 14 million tonnes per year (mtpa) to 28 mtpa.
The Phase 2 expansion will add two LNG processing units, an additional LNG storage tank, condensate tank, loading berth, and expanded utility and process systems.
With the expansion, the project will represent what is believed to be the first large-scale, four-train LNG export facility in Canada.
In parallel, LNG Canada signed an agreement to act as execution manager for Coastal GasLink’s expansion of the existing 670-kilometre pipeline through the construction of five new compressor stations.
The company, along with the governments of British Columbia and Canada, estimate Phase 2 has potential to generate C$50bn ($35bn) in government revenues over the life of the project.
Chris Cooper, President and CEO of LNG Canada, said, “Phase 2 will double LNG Canada’s capacity… 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.”
According to the Canadian government, the West Coast currently represents C$100bn ($70.4bn) in potential capital investment.
The expansion project supports the Canadian government’s target of reaching 50mtpa of LNG by the early 2030s, scaling up to 100mtpa by 2040.
It also comes as the Canadian government looks to beyond the US and expand LNG exports into European and Asian markets.
Masaru Saito, Group CEO, Energy and Power Solution Group at Mitsubishi Corporation, said, “We are helping meet growing global energy needs, supporting economic growth in Canada, and enhancing energy security in Japan and Asia.”
In July, LNG Canada and its joint venture partners an equity option agreement giving MNT Investments LP the option to invest up to C$1bn ($0.7bn) to acquire a majority stake in a special purpose entity that would own a planned LNG storage tank as part of LNG Canada’s planned Phase 2 expansion.
MNT Investments LP represents the economic development organisations of five First Nations neighbouring LNG Canada’s operations in Kitimat, British Columbia.
The British Columbia-based energy project is jointly owned by energy firms Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi (15%), and Kogas (5%). Each of the five joint venture participants is responsible for the LNG offtake in proportion to its equity stake.
The from LNG Canada left Kitimat for customers in Asia in July 2025.
