EventDocument
Canada, British Columbia and LNG Canada sign an investment co-operation agreement to support a 2026 decision on Phase 2
The governments of Canada and British Columbia and LNG Canada announced on 14 May 2026 an agreement on enhanced investment co-operation and joint actions to close the remaining items needed for a possible 2026 final investment decision on LNG Canada's proposed Phase 2 expansion. It followed a 1 May decision by LNG Canada's joint venture partners to approve hundreds of millions of dollars in extra funding for engineering, possible long-lead orders, agreements with First Nations and other work toward a decision by the end of the year. The release said any decision remained subject to the partners independently meeting all commercial, fiscal, regulatory and governance requirements. The Terrace Standard reported on 24 September that, according to a Reuters report of 17 September citing three people familiar with the matter, the decision could come as early as October. LNG Canada's partners took the final investment decision on Phase 2 on 29 September 2026; that decision is recorded as a separate event.
- Date
- Kind
- Agreement
- Where
- British Columbia
- Evidence
- Document: An official document: a bill, a filing, an agreement text. How evidence is weighed
- Who
- Government of Canada (signed); Government of British Columbia (signed); LNG Canada (joint venture) (signed); LNG Canada (joint venture) (subject); Shell (subject)
Sources
- Major Projects Office (Government of Canada), “LNG Canada Phase 2 - Major Projects Office” (external site). source record
- BC Gov News, “Enhanced investment co-operation advances efforts around LNG Canada’s proposed Phase 2 expansion” (external site), . source record
- Natural Resources Canada, “Enhanced Investment Co-operation Advances Efforts Around LNG Canada's Proposed Phase 2 Expansion” (external site), . source record
- Terrace Standard, “LNG Canada Phase 2 decision could come as early as October” (external site), . source record
- Prime Minister of Canada, “Prime Minister Carney welcomes LNG Canada Phase 2, the second-largest single private investment in Canadian history” (external site), . source record
- LNG Canada (via Cision Newswire), “LNG Canada Announces Phase 2 Final Investment Decision” (external site), . source record
- Shell, “Shell takes final investment decision to double LNG Canada capacity” (external site), . source record
- TC Energy (via GlobeNewswire), “Coastal GasLink Phase 2 to proceed following LNG Canada Final Investment Decision” (external site), . source record
Projects
Claims that rest on this event
- Output is split into projects that don't need the new fast-track laws and projects that depend on them. Only the second group can say anything about the effect of the tariffs, and neither says anything about Washington's intent.
LNG Canada Phase 2 was referred to the federal Major Projects Office in September 2025; this agreement is a step in the federal and provincial fast-track effort, so it counts among the projects that depend on the new fast-track laws; the partners took the final investment decision on 29 September 2026, while Bill C-39 was still before Parliament and the Mega Deduction was still a draft proposal. It stays in that group as a project referred to the Major Projects Office, but its decision came while neither measure was law.
How it bears on the outcome
| Explanation | Fit | Why |
|---|---|---|
| O0 No meaningful speed-up | Against weak | A government-industry co-operation agreement to close items for an LNG expansion decision points toward speed-up; it is a document, with the decision recorded separately. |
| O1 Faster, but the extra output goes mostly elsewhere | Fits weak | BC coastal LNG goes overseas, consistent with extra output going elsewhere. |
| O2 Faster, and more volume reaches the US (this level or higher) | Neutral weak | Nothing here bears on volumes going to the US. |
| O3 Locked-in preferential terms for the US | Neutral weak | No US terms are involved. |