The LNG Canada joint venture participants announced on September 29, 2026 that they have taken the FID (Final Investment Decision) for the Phase 2 expansion of the Kitimat, British Columbia LNG export terminal, according to reports. The expansion adds two liquefaction trains and is reported to double capacity from 14 million tonnes per annum (mtpa) to 28 mtpa. On the same day, TC Energy reportedly said the Coastal GasLink Phase 2 expansion of the feed-gas pipeline would proceed.
Phase 2 is reported to add two LNG (Liquefied Natural Gas) liquefaction trains to the existing Kitimat facility. LNG Canada will reportedly act as execution manager, working with Coastal GasLink to expand pipeline capacity. Coastal GasLink is a roughly 670 km pipeline carrying gas from northwestern Alberta and northeastern British Columbia from Dawson Creek to Kitimat.
The joint venture ownership is reported as Shell Canada Energy 40%, PETRONAS 25%, PetroChina 15%, Mitsubishi Corporation 15% and KOGAS 5%. TC Energy, as a co-owner of Coastal GasLink, will operate the Phase 2 infrastructure, while Coastal GasLink remains owner, operator and permit holder. TC Energy’s FID was conditional on the joint venture approving the LNG facility expansion, which reportedly occurred on the same date.
LNG Canada capacity is to rise from 14 mtpa to 28 mtpa. Coastal GasLink’s current capacity is 2.1 Bcf/d (billion cubic feet per day), and new compressor stations and facility upgrades are to nearly double it. Five new compressor stations are reportedly planned.
Employment is reported at about 4,000 new jobs at peak construction in Kitimat and up to about 2,100 people for pipeline compressor station construction. In operations, roughly 90 full-time and 150 contractor roles would be added to the existing workforce of more than 400. TC Energy reportedly expects construction to begin in early 2027 and in-service in the early 2030s. LNG Canada said MNT Investments LP, representing five First Nations, may invest up to CAD 1 billion in an LNG storage tank through a special purpose entity. Total project cost and the liquefaction start-up date were not confirmed in the official announcements.
Phase 1 is reported to have begun shipping LNG in 2025, and Phase 2 doubles the capacity of a large West Coast export project aimed at Asian markets. The federal government reportedly welcomed the project as one referred to the Major Projects Office.
First, taking FID on the liquefaction facility and the feed-gas pipeline on the same day shows the importance of integrated investment across the upstream transport network and the liquefaction terminal in LNG export projects. Second, the many Asian energy companies in the ownership structure suggest that demand-side supply diversification needs were reflected in the investment decision. Third, new compressor stations and storage tank investment may translate into large demand for the EPC (Engineering, Procurement and Construction) and equipment markets. Fourth, the participation structure of Indigenous communities offers a case of how large energy infrastructure secures permits and local acceptance.
First, whether total project cost and the liquefaction start-up target are disclosed. Second, the schedule for Phase 2 EPC and major equipment orders and the selection of contractors. Third, whether Coastal GasLink compressor station construction begins in early 2027 as expected. Fourth, trends in long-term offtake agreements for the new volumes. Fifth, how Phase 1 operating performance is reflected in the Phase 2 process plans.