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LNG Canada sanctions Phase 2, doubling Kitimat to 28 million tonnes a year
The five-company joint venture led by Shell took the final investment decision on September 28; Ottawa calls it a C$33 billion private investment, the second-largest in Canadian history, and Coastal GasLink will expand to feed it from early 2027.
LNG Canada's joint venture participants took the final investment decision on September 28, 2026 to build Phase 2 of the Kitimat, British Columbia export plant, taking capacity from 14 million tonnes a year to 28 million [1]. The federal government describes it as a C$33 billion private investment, the second-largest in Canadian history, by Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi (15%) and KOGAS (5%), and says the project was referred to its Major Projects Office in September 2025 [2]. Phase 1 loaded its first cargo on June 30, 2025 and shipped more than 100 in its first year [1][4].
The gas has to get there. TC Energy said the next day that Coastal GasLink, the 670-kilometre line from Dawson Creek to Kitimat that now carries 2.1 billion cubic feet a day, will nearly double its capacity by adding compression, with construction from early 2027 and service in the early 2030s [3]. MNT Investments LP, representing five First Nations, holds an option to invest up to C$1 billion in the Phase 2 storage tank [1][2].
For a U.S. reader the decision matters in two directions. It doubles Canada's first large-scale LNG export plant, the outlet that gives Western Canadian gas a buyer other than the U.S. pipeline market, and from the early 2030s it adds a second Pacific supplier competing with U.S. Gulf Coast cargoes for the same Asian buyers [4].
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1
LNG Canada Announces Phase 2 Final Investment Decision
FID by the joint venture participants; Phase 2 takes capacity from 14 to 28 mtpa; Phase 1 shipped its first cargo in June 2025; partners Shell, PETRONAS, PetroChina, Mitsubishi Corporation, KOGAS; LNG Canada to act as execution manager for the Coastal GasLink expansion (five new compressor stations, about 2,100 jobs at peak); JGC Fluor joint venture; MNT Investments LP equity option of up to C$1 billion in the Phase 2 storage tank.
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Prime Minister welcomes LNG Canada Phase 2, the second-largest single private investment in Canadian history
C$33 billion private-sector investment; doubles capacity to 28 million tonnes a year; Shell 40%, PETRONAS 25%, PetroChina 15%, Mitsubishi 15%, KOGAS 5%; more than 4,000 direct construction jobs; project referred to the Major Projects Office in September 2025; MNT Investments LP option of up to C$1 billion; nearly C$5 billion of contracts to First Nations and local businesses.
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Coastal GasLink Phase 2 to proceed following LNG Canada Final Investment Decision
Existing 670-kilometre line from Dawson Creek to Kitimat carries 2.1 Bcf/d; Phase 2 nearly doubles capacity through compression; construction expected to begin in early 2027 with service in the early 2030s; up to 2,100 workers at peak; LNG Canada as execution manager, Coastal GasLink remains owner, operator and permit holder.
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4
LNG Canada Celebrates One Year of Operations
More than 100 cargoes shipped in the first year after the first cargo on June 30, 2025.
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