ProjectLNGGoes tidewater

LNG Canada Phase 2

Expansion of LNG Canada's export terminal at Kitimat, BC: two more trains add about 14 million tonnes a year, doubling capacity to 28 million tonnes a year. Referred to the Major Projects Office on September 11, 2025. The joint-venture partners (Shell, PETRONAS, PetroChina, Mitsubishi and KOGAS) took the final investment decision on September 29, 2026 (LNG Canada's release is dated September 28), while Bill C-39 was still before Parliament and the Mega Deduction was still a draft proposal. The Prime Minister's Office and the Major Projects Office put the investment at $33 billion; Shell expects commercial operations in the early 2030s. The decision lets five First Nations, through MNT Investments LP, invest up to C$1 billion for a majority stake in the Phase 2 LNG storage tank. TC Energy said Coastal GasLink Phase 2, which adds compressor stations to nearly double the pipeline's capacity, will proceed. Each partner is responsible for taking its own share of the output (equity lifting); the announcements name no third-party buyers for Phase 2 output.

Status

Under construction

Direction

Tidewater: Reaches a coast, so Canada can sell to buyers other than the US.

Capacity

14 Mtpa

Where

British Columbia

Investment decision

29 September 2026

Needs new laws?

Yes: part of the second wave, waiting on fast-track laws

Events

• 1 October 2026LNG Canada Phase 2 early construction begins days after the investment decision; JGC-Fluor joint venture holds the EPC contract (Fluor's share US$7.5 billion)ActionContractBritish Columbia2 sources
• 29 September 2026LNG Canada's partners take the final investment decision on Phase 2, to double the Kitimat plant's capacity to 28 million tonnes a yearActionInvestment decisionBritish Columbia5 sources
• 29 September 2026Wet'suwet'en hereditary chiefs and environmental groups say LNG Canada Phase 2 has no business case without public subsidies⚠ Caution: single sourceStatementStatementBritish Columbia2 sources
• 2 July 2026Carney and Eby sign the Canada–British Columbia Cooperative Prosperity Agreement in VancouverDocumentAgreementBritish Columbia6 sources
• 14 May 2026Canada, British Columbia and LNG Canada sign an investment co-operation agreement to support a 2026 decision on Phase 2DocumentAgreementBritish Columbia8 sources
• 1 May 2026LNG Canada partners approve 'hundreds of millions of dollars' in pre-FID funding for Phase 2ActionInvestment decisionBritish Columbia3 sources
• 11 September 2025First five projects referred to the Major Projects Office (over C$60B), including LNG Canada Phase 2DocumentRegulationCanada3 sources
• 7 April 2025Poilievre pledges 'One and Done' approvals for resource projects, with a one-year maximum and a six-month target, and names ten projects to accelerateStatementStatementCanada1 source