Fluor and JGC’s joint venture (JV) has received notice to proceed (NTP) on LNG Canada’s phase two expansion after the project partners made a final investment decision (FID) on the expansion programme.
JGC Fluor BC LNG II JV, a 50:50 Canadian venture, will carry out engineering, procurement, fabrication, construction and commissioning work for phase two of the LNG Canada export facility in Kitimat, British Columbia (BC).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
LNG Canada is a JV held by Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi (15%) and KOGAS (5%).
Fluor announced that it will recognise its $7.5bn share of the multibillion-dollar contract in the third quarter of fiscal year 2026.
The award follows the completion of phase one of the liquefied natural gas (LNG) export facility, which the JV also delivered.
Phase two will see the addition of a third LNG storage tank and the construction of two new liquefaction trains, which will double the plant’s production capacity from 14 million tonnes per annum (mtpa) to 28mtpa.
The expanded facility aims to boost processing, storage and shipping capacities amid continued demand for LNG.
Fluor CEO Jim Breuer said: “LNG Canada Phase 1 was a landmark achievement for Fluor, and we are excited to carry that momentum into the next chapter.
“The decision to proceed with Phase 2 reflects confidence in Canada’s ability to responsibly develop its natural gas resources and connect them with global markets.
“Our teams will apply the experience and lessons learned from Phase 1 to deliver a successful project.”
Located on Canada’s west coast, the LNG Canada terminal has access to significant natural gas resources and a deep-water, ice-free harbour.
The original facility began LNG production in June 2025, with handover completed in October of that year.
EIG’s MidOcean Energy has also announced its participation in the LNG expansion project through its Petronas partnership.
In December 2025, MidOcean acquired 20% interests in the North Montney Upstream JV and North Montney LNG, which hold Petronas’ Canadian upstream investment and its 25% LNG Canada interest, respectively.
The expansion is expected to increase MidOcean’s associated LNG volumes from 700,000 tonnes per annum to 1.4mtpa.
In addition, TC Energy has confirmed that Coastal GasLink (CGL) phase two will proceed after the FID by LNG Canada.
The existing 670km line transports approximately 2.1 billion cubic feet a day, and the expansion will nearly double capacity with compressor stations and upgrades between Dawson Creek and Kitimat.
Under an integrated commercial model, LNG Canada will manage phase two project construction, while TC Energy’s CGL will retain ownership, operational and permitting responsibilities.
CGL and TC Energy will provide technical advisory and procurement services, alongside operational expertise.
