LNG Canada Approves $33-Billion Phase 2 Expansion in Kitimat
LNG Canada and its joint venture partners have approved a final investment decision for the Phase 2 expansion of their liquefied natural gas terminal in British Columbia, doubling production capacity. The move triggers the Coastal GasLink pipeline expansion, drawing support from political leaders for job creation but criticism from environmental groups over emissions.
LNG Canada has officially moved forward with its multibillion-dollar Phase 2 expansion project in Kitimat, British Columbia. The private sector investment for this phase is approximately $33 billion. The expansion aims to double the facility's annual production capacity of liquefied natural gas (LNG) from 14 million tonnes to 28 million tonnes.
The project is led by LNG Canada, a joint venture company composed of Shell, Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas Corp (KOGAS). Chris Cooper, the CEO of LNG Canada, stated that the project will create thousands of jobs and strengthen Canada’s role as a trusted energy partner.
Prime Minister Mark Carney supported the decision, describing it as a nation-building investment. He noted that the expansion will make the facility the second-largest of its kind in the world and is expected to create up to 4,000 new jobs in Kitimat during peak construction.
Following LNG Canada’s positive final investment decision, TC Energy announced that its Coastal GasLink Phase 2 project will proceed. This pipeline expansion involves adding new compressor stations and upgrades along the existing 670-kilometre route from Dawson Creek to Kitimat, nearly doubling the pipeline's capacity. Construction for Coastal GasLink Phase 2 is expected to commence in early 2027, with an anticipated in-service date in the early 2030s. Up to 2,100 people are estimated to be employed on the pipeline project during peak construction across five sites.
While political leaders and industry proponents frame the expansion as a necessary economic boost, critics have raised significant concerns. Environmentalists and some Indigenous leaders argue that the rapid expansion will contribute to rising greenhouse gas emissions and violate Indigenous rights. B.C. Conservative Leader Lorne Doerkson promised to triple LNG production by 2035 if elected, while the B.C. NDP claimed their plans were more ambitious.