Fluor Corporation announced that its joint venture JGC Fluor BC LNG II, formed with JGC Corporation, received a limited notice to proceed with the proposed LNG expansion Canada Phase 2, in Kitimat, British Columbia.
The authorization, known as LNTP, allows initiation of early planning and essential activities to support a potential final investment decision.
Phase 2 does not yet have a definitive FID, but the measure represents a significant advancement for the liquefied natural gas export project on the Canadian west coast.
Early Activities for the Expansion
The limited notice to proceed allows Fluor and JGC to advance initial tasks before a potential final investment decision. These activities may include planning, early engineering, work preparation, and support for the project execution strategy.
Pierre Bechelany, president of Fluor’s Energy Solutions group, noted that the LNTP allows initiation of early planning and advancement of key activities to support LNG Canada’s proposed final investment decision for Phase 2.
The same joint venture participated in the execution of Phase 1, providing engineering, procurement, fabrication management, construction, and commissioning services.
Phase 1 Was Delivered in 2025
In 2025, JGC Fluor delivered the two processing units of the project’s first phase, known as trains, along with supporting infrastructure such as storage tanks, rail yard, water treatment plant, flares, and marine terminal.
The LNG Canada plant currently has an annual production capacity of approximately 14 million tons of LNG. The proposed expansion would double that capacity if the partners make a positive final investment decision.
Located on the Canadian Pacific coast, the facility has access to natural gas from western Canada and an ice-free port, enabling connection of Canadian production with international LNG markets.
LNG Canada Could Double Capacity
Phase 2 contemplates expanding export capacity through new liquefaction trains. If realized, LNG Canada would strengthen Canada’s position as a global LNG supplier from the west coast.
The project operates under a 40-year license and is designed to supply liquefied natural gas to international markets, especially in Asia, due to Kitimat’s strategic location facing the Pacific.
The expansion would also enable increased utilization of Canadian gas resources and strengthen the country’s energy export infrastructure.
Shell Leads the Joint Venture
LNG Canada is a joint venture comprised of Shell, with 40%; PETRONAS, with 25%; PetroChina, with 15%; Mitsubishi Corporation, with 15%; and KOGAS, with 5%.
For its part, JGC Fluor BC LNG II is a Canadian joint venture formed by Fluor Canada Ltd. and JGC Constructors (No2) BC Ltd., each with a 50% stake.
With this limited notice, Fluor and JGC advance the technical preparation of an expansion that, if it obtains final approval, could double LNG Canada’s production capacity and consolidate Kitimat as one of the key LNG export centers in North America.
Source and photo: https://newsroom.fluor.com/news-releases/
