LNG Canada announced on September 28, 2026 that its five joint venture participants have approved a Final Investment Decision on the Phase 2 expansion of its liquefied natural gas export facility in Kitimat, British Columbia, a move that will double the project's production capacity and rank among the largest private sector investments in Canadian history.

The joint venture participants behind the decision are Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. The project is situated in the traditional territory of the Haisla Nation and has been designated a Project of National Significance by the federal government.

What Phase 2 Will Add to the Existing Facility

The expansion will construct two additional LNG processing units, known as trains, within LNG Canada's existing Kitimat site. Upon completion, total production capacity will rise from 14 million tonnes per annum to 28 million tonnes per annum, positioning LNG Canada on a trajectory to become one of the largest LNG facilities in the world.

Beyond the processing trains, Phase 2 includes the construction of an additional LNG storage tank, a condensate tank, a new loading berth and expanded utility and process systems.

The existing Phase 1 footprint and infrastructure were designed and engineered from the outset to accommodate a four-train LNG export facility, with Phase 2 building directly on that foundation.

LNG Canada has also entered into commercial agreements to act as execution manager for an expansion of the Coastal GasLink pipeline, working with the pipeline operator to increase its capacity through the construction of five new compressor stations along the existing 670-kilometre route.

CEO and Federal Minister Cite Nation-Building Significance

Chris Cooper, President and Chief Executive Officer of LNG Canada, described the Phase 2 decision as a nation-building investment and said it would help move Canada toward becoming one of the world's top five LNG exporting nations.

"Phase 2 will create thousands of jobs and further strengthen Canada's role as a trusted energy partner, bringing more responsibly produced Canadian LNG to global markets while supporting long-term prosperity at home," Cooper said.

Canada's Minister of Energy and Natural Resources, the Honourable Tim Hodgson, called the decision a massive vote of confidence in Canada. "At a time when our country must build a stronger economy that allows us to be an energy superpower for the long term, this is exactly the kind of investment Canada needs: catalyzing private capital, diversifying trade, strengthening global energy security, fostering Indigenous partnership, and turning our world-class resources into Canadian lasting prosperity," Hodgson said.

Up to USD 1 Billion Indigenous Equity Option Moves Forward

The Phase 2 Final Investment Decision enables the implementation of a landmark equity option agreement announced on July 14, 2026 with MNT Investments LP, a limited partnership representing the economic development organizations of five First Nations neighbouring LNG Canada's operations: the Gitga'at Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation and Kitsumkalum First Nation.

Under the terms of that agreement, an investment of up to one billion Canadian dollars will be made through a special purpose entity that will purchase the future LNG storage tank to be built as part of Phase 2. LNG Canada has described the transaction as one of the largest Indigenous ownership positions in major Canadian infrastructure.

Government Revenue Projections Exceed USD 50 Billion Over Project Life

LNG Canada, together with the governments of British Columbia and Canada, estimates that Phase 2 has the potential to generate more than USD 50 billion in government revenues over the life of the project. That figure encompasses direct spending, taxes, royalties and other government revenues generated through direct and indirect economic activity associated with the Phase 2 expansion.

For context, the company noted the scale of employment generated during Phase 1 construction, where more than 50,000 Canadians contributed to delivery of the first phase, while the connecting Coastal GasLink pipeline employed more than 25,000 Canadians.

Thousands of Construction Jobs Expected at Peak Activity

At peak construction, Phase 2 is expected to host up to 4,000 new construction jobs at the Kitimat site. An additional approximately 2,100 jobs will be required to build the new compressor stations along the Coastal GasLink pipeline route.

LNG Canada stated that Phase 2 will rely on tens of thousands of skilled tradespeople to complete the project safely, consistent with the approach taken during Phase 1.

The company noted that this activity supports additional employment, contracting and business opportunities in communities across Northern British Columbia and in supply chains connected to the Phase 2 expansion.

Once construction is complete and Phase 2 operations begin, LNG Canada said the expanded facility will add approximately 90 full-time roles and 150 contractor positions to its existing operational workforce.

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