Fluor to Proceed with Expansion of LNG Canada

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

The second phase for the LNG Canada facility in British Columbia would double its export capacity. LNG Canada is the only plant in North America exporting super-cooled gas from the Pacific Coast.

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28 Million Metric Tons per Annum

The developers of the LNG Canada facility in British Columbia tapped a joint venture led by engineering firm Fluor Corporation with leading developments that could double the plant's capacity.

IIR finds the LNG Canada facility can produce 14 million metric tons of gas in the liquid form from two trains located in Kitimat, British Columbia. As of now, it's the only facility of its kind in North America that can deliver liquefied natural gas from the Pacific Coast. According to Industrial Info Resources data, the proposed addition of two more liquefaction units--trains 3 and 4--has an investment value of US$12.5 billion.

The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Production Project Database offers a detailed project report.

On Tuesday, Fluor Corporation and its joint venture partner JGC Corporation said they received a limited notice to proceed with the proposed Phase 2 expansion. The same team played a central role in the initial developments. LNG Canada will make a final investment decision (FID) on the expansion of its liquefied natural gas (LNG) production and export facility by the end of this year.

"Our long standing partnership with LNG Canada is a point of pride for us, and we look forward to advancing the next phase of this world class project to help connect Canadian natural gas to global markets," said Pierre Bechelany, Fluor's business group president of energy solutions.

The capacity at LNG Canada would double should a final investment decision be reached and the expansion proceeds. LNG Canada is a joint venture led by Shell, with a 40% stake.

LNG Canada started operations only last year, reaching 25 cargos by November shortly before it started operations from its second train. The facility, which already has offtake agreements with Japanese energy company JERA, among others, is part of a trade diversification spree steered by Canadian Prime Minister Mark Carney.

By the Numbers

• 28 million metric tons from expanded LNG Canada annually
• US$12.5 billion expansion would add two more liquefaction units

A Significant Potential for Even More

Carney, a former central bank official, has said the historic relationship with the United States, its largest trading partner, has evolved into a mistake that must be corrected. LNG is included in a series of nation-building projects, and Carney said the nation is primed to become an energy superpower.

Ksi Lisims, another LNG export terminal, was backed by Carney last year. Slated for Pearse Island off the coast of British Columbia, it would be Canada's second-largest LNG facility and boast some of the lowest emissions globally.

Ksi Lisims would be fed by the Prince Rupert Gas Transmission (PRGT) pipeline. Led by TC Energy, work began on the 466-mile artery that could carry up to 3.6 billion cubic feet per day (Bcf/d) to the Ksi Lisims facility.

Approved more than a decade ago, the pipeline was held up by environmental reviews. Readers can learn more from a project report.

All of the long-term contracts for LNG from Canada are for Asian economies. Data to March, the last full month for which the Canadian government supplied records, show South Korea was the dominant importer.

Federal data show exports averaged 1.4 billion cubic feet of gas in the liquid form to March, a 350% increase over full-year 2025 levels.

Key Takeaways

• Canada moving fast on LNG export developments.
• LNG fits in with Prime Minister Carney's trade diversification strategy.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).