Prime Minister Mark Carney says LNG Canada’s Phase 2 final investment decision will unlock $33 billion in private investment and double the Kitimat terminal’s capacity to 28 million tonnes annually.
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LNG Canada’s Phase 2 expansion has moved ahead after the project’s private ownership group reached a final investment decision, with Prime Minister Mark Carney saying the move shows Canada acting like an “energy superpower.” The federal government says the decision will unlock $33 billion in private investment and double the Kitimat export terminal’s capacity to ship liquefied natural gas (LNG) overseas.
The expansion is expected to increase the terminal’s annual production capacity from 14 million tonnes to 28 million tonnes. LNG Canada says the second phase will add two processing units, another LNG storage tank, and an additional loading berth, along with supporting equipment.
The project builds on the first phase, which began exporting LNG in June 2025. Carney welcomed the Phase 2 final investment decision on Tuesday.
The federal government described the Phase 2 expansion as the second-largest single private investment in Canadian history and says it will make LNG Canada the world’s second-largest facility of its kind. Carney said the investment is “proof that Canada is building big and bold again,” adding that the project will “export some of the lowest-emitting LNG to new markets in Asia.”
Carney’s administration referred the expansion to the federal Major Projects Office in September 2025, and the office has since coordinated federal processes while working with the provincial government and industry. The federal government also pointed to a cooperation agreement between Carney and Premier David Eby reached in July 2026 as including support for the project.
LNG Canada says the Kitimat site could see up to 4,000 construction jobs at peak activity. After completion, the company expects about 90 full-time roles and 150 contractor positions to be added to the project’s operating workforce.
The terminal receives natural gas by pipeline, chills it into a liquid for transport by ship, and is located on B.C.’s northern coast to provide access to overseas customers, particularly in Asia.
The Phase 2 decision also clears the way for a separate multibillion-dollar capacity increase for Coastal GasLink. TC Energy says upgrades along the pipeline’s existing route, including new compressor stations, will nearly double the amount of gas the 670-km line can carry from the Dawson Creek area to Kitimat. TC Energy says construction is expected to begin in early 2027, with the upgraded system entering service in the early 2030s.
TC Energy estimates up to 2,100 people could be employed at peak construction activity across five sites for the Coastal GasLink expansion.
LNG Canada is owned by Shell Canada with a 40 per cent stake. Malaysia’s Petronas holds 25 per cent, while China’s PetroChina and Japan’s Mitsubishi Corporation each have 15 per cent, and South Korea’s Kogas has five per cent.
The investment decision also includes an opportunity for five nearby First Nations to become owners of part of the terminal’s infrastructure. Through MNT Investments LP, the Gitga’at, Gitxaała, Haisla, Kitselas, and Kitsumkalum First Nations have an option to invest up to $1 billion for a majority stake in a new 225,000-cubic-metre LNG storage tank, with the tank planned to be leased back to the project to provide long-term revenue for participating First Nations.
The federal government says LNG Canada has already awarded more than $4.9 billion in contracts and procurement to Indigenous-owned and local businesses, and says Coastal GasLink’s cumulative contracts with Indigenous and local businesses exceed $1.8 billion.
Premier Eby described the decision as the result of years of cooperation between the federal government, the private sector, and First Nations, saying it “will create good jobs and generate the long-term prosperity we need to deliver stronger public services for all British Columbians.” The BC NDP said some provincial revenue from the development would support climate programs aimed at helping households and businesses switch to cleaner energy, and it cited projections that emissions from the facility’s operations would be 35 per cent below those of the world’s best-performing LNG facilities and 60 per cent below the global average.
The Conservatives welcomed the expansion, but said the provincial government should have attracted more LNG investment sooner. In a statement issued on behalf of the Conservatives, Claire Rattée—an MLA candidate for the riding of Skeena—said the party wants more announcements like the Phase 2 final investment decision.
Rattée said the Conservatives blamed regulatory delays and uncertain approval processes for proposed projects that did not advance under the BC NDP. She pointed to LNG Canada’s employment, business contracts, and First Nations partnerships as reasons to pursue further development.
A business advocacy group said the Phase 2 expansion could provide major economic returns. The Greater Vancouver Board of Trade, citing LNG Canada estimates, said the second phase could generate more than $50 billion in government revenue over the project’s lifetime; its president and CEO Bridgitte Anderson said the investment demonstrates what can happen when governments, Indigenous partners, and industry work together.
The business group also said it has identified more than $230 billion in potential major investments across B.C., including LNG and other energy infrastructure, critical minerals, and transportation infrastructure supporting trade, and it called for faster permitting, greater Indigenous participation in project ownership, and stronger conditions for attracting investment.
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