Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS have approved Phase 2 of LNG Canada’s Kitimat export project in British Columbia, doubling capacity from 14m to 28m tonnes a year, according to a company statement.
The expansion will add two LNG trains, taking the plant to four, along with another LNG storage tank, condensate tank and loading berth, plus expanded utility and process systems.
LNG Canada has entered commercial agreements to act as execution manager for an expansion of the 670-km Coastal GasLink pipeline through five new compressor stations.
Peak construction is expected to require up to 4,000 workers in Kitimat and about 2,100 workers on the compressor-station programme. Completion is expected to add about 90 full-time roles and 150 contractor positions to a workforce that currently exceeds 400 permanent employees.
The FID also enables an equity option agreed on 14 July 2026 with MNT Investments LP. The limited partnership can invest up to C$1bn ($705m) in a special-purpose entity that will purchase the future Phase 2 LNG storage tank.
LNG Canada and the governments of British Columbia and Canada estimate Phase 2 could generate more than C$50bn ($35.25bn) in government revenues over the life of the project. More than 50,000 Canadians worked on Phase 1, while the Coastal GasLink pipeline employed more than 25,000.
LNG Canada will continue to use an equity lifting structure, under which each participant takes its proportionate share of LNG production.
LNG Canada Development Inc. operates the Kitimat export facility, which holds a 40-year export licence and began shipping on 30 June 2025.
Shell plc is an international energy group; PETRONAS is an energy group with operations in more than 100 countries; PetroChina Company Limited is an oil and gas producer and distributor; Mitsubishi Corporation is an integrated trading and investment company; and Korea Gas Corporation, or KOGAS, is South Korea’s principal LNG provider.
The project is owned through Shell Canada Energy with 40%, North Montney LNG Limited Partnership with 25%, PetroChina Kitimat LNG Partnership with 15%, Diamond LNG Canada Partnership with 15% and KOGAS Canada LNG Partnership with 5%.
Coastal GasLink is the dedicated 670-km pipeline supplying the plant. MNT Investments LP is a limited partnership of the economic development organisations of five neighbouring First Nations.