Final Investment Decision on LNG Canada Phase 2 May Be Made in Early October

en.Wedoany.com Reported - On September 17, people familiar with the matter revealed that the partners in the LNG Canada joint venture led by Shell may make a final investment decision (FID) on the Phase 2 expansion as early as early October. Phase 2 plans to add two liquefaction trains to the existing LNG facility in Kitimat, British Columbia, Canada, increasing the project's total capacity from approximately 14 million tonnes per annum to 28 million tonnes per annum. The relevant investment decision still requires internal approval from the five joint venture partners.

LNG Canada Phase 1 consists of two liquefaction trains, loaded its first LNG cargo in June 2025 and entered operation, with a designed capacity of approximately 14 million tonnes per annum. The project's current shareholders are Shell with 40%, Petronas with 25%, PetroChina with 15%, Mitsubishi Corporation with 15%, and Korea Gas Corporation with 5%. Shell currently still lists LNG Canada Phase 2 in its pre-FID project portfolio, corresponding to approximately 14 million tonnes per annum of additional LNG capacity.

Phase 2 has already entered the EPC preparation stage ahead of schedule. In June of this year, the JGC Fluor BC LNG II consortium, composed of JGC and Fluor, received a limited notice to proceed from LNG Canada, allowing it to carry out preliminary planning and key preparatory work before the final investment decision is made. The consortium previously undertook the engineering design, procurement, fabrication management, construction, and commissioning of Phase 1, with a scope of work covering two liquefaction trains as well as supporting facilities including storage tanks, water treatment facilities, flare systems, rail facilities, and a marine terminal.

In July, LNG Canada signed an Indigenous equity option agreement with MNT Investments LP. MNT Investments LP is composed of the economic development corporations of five Indigenous nations near the project and can invest up to CAD 1 billion to acquire a majority stake in a special purpose entity. The entity plans to purchase the LNG storage tanks to be built in Phase 2 and lease them back to LNG Canada during the project's operating period. The transaction is conditional on the five joint venture partners approving the Phase 2 expansion.

LNG Canada previously announced a Phase 2 timeline targeting a final investment decision by the end of 2026. This latest disclosure further shortens the potential decision window to as early as early October. The project is currently still in the pre-FID stage, and the Phase 2 expansion has not yet received formal investment approval.