Construction begins on LNG Canada Phase 2 just days after investment decision

LNG Canada’s Phase 2 expansion moved from final investment decision to physical construction in just two days, beginning another major construction cycle in Kitimat that will double the facility’s production capacity and bring up to 4,000 construction jobs to the site at peak activity.

The final investment decision was announced Sept. 29, the same day JGC Fluor BC LNG II Joint Venture received notice to proceed from LNG Canada. Early construction began Oct. 1 and is expected to continue for about four months.

Initial work includes construction of a water treatment system, along with grading, excavation and piling in the area for a second LNG storage tank and grading in the area for a new processing train. Construction is also underway on parts of the jetty and marine facilities, with water-management pond work expected to begin in October and heavy piling for foundations scheduled to follow in January.

“Reaching FID is an important milestone for LNG Canada and Fluor,” said Pierre Bechelany, Fluor’s Business Group President of Energy Solutions. “Our long-standing relationship and successful delivery of Phase 1 provide a strong foundation for the work ahead. As construction progresses, our focus will remain on safety, quality and collaboration with our partners, First Nations and local communities.”

The work now underway marks the start of an expansion that will add two liquefaction trains and another LNG storage tank, increasing processing, storage and shipping capacity and doubling LNG Canada’s production capacity to approximately 28 million tonnes annually.

The additional infrastructure will be built within LNG Canada’s existing Kitimat footprint, which was designed from the outset to accommodate four processing trains.

The JGC-Fluor joint venture was selected to deliver engineering, procurement, fabrication, construction and commissioning for the expansion.

For Kitimat, Phase 2 follows the large-scale construction effort required to build the first phase. LNG Canada said more than 50,000 Canadians contributed to Phase 1 construction.

As early works advance, JFJV2 will progressively assume prime contractor responsibility for designated construction areas, with the full transition planned for February 2027. The current early-work program is also expected to be completed by February.

Some construction activity may take place during night shifts, while workers will be housed at the Horizon North and Sitka camps and transported to and from the project site by mini-bus. The extent of noise and other disruptions to the community is unclear, however JFJV2 said it will work to minimize impacts on surrounding communities.

The Northern Sentinel has reached out to Fluor for details.

In public statements, Fluor CEO Jim Breuer and JGC Holdings Corporation Chairman, President and CEO Masayuki Sato both pointed to the joint venture’s experience delivering Phase 1 as a foundation for the next stage. Breuer said lessons from the first phase would be carried into the expansion, while Sato said JGC would continue working with LNG Canada and Fluor on safe, responsible and efficient delivery.

The joint venture delivered Phase 1, including two processing trains and associated infrastructure. LNG production began in June 2025, with handover of the facility completed in October 2025.

Once Phase 2 is operating, LNG Canada expects to add about 90 permanent positions and 150 contractor jobs in Kitimat. The existing operation has more than 400 permanent full-time employees.