LNG Canada’s Partners Commit to Double Export Capacity
A final investment decision for two new Kitimat processing trains raises planned annual output from 14 million to 28 million tonnes. The total cost is undisclosed, and years of construction remain before the extra exports arrive.
Five LNG Canada joint-venture owners have taken a final investment decision on Phase 2 at Kitimat, British Columbia. For an industry often sold in political soundbites, the material change is that the partners have authorised the next stage of investment. Shell, Petronas, PetroChina, Mitsubishi Corporation and Korea Gas Corporation own the project.
Two new processing trains are planned within the existing terminal, doubling capacity from 14 million tonnes a year to 28 million, according to LNG Canada. The company also says its work with Coastal GasLink will expand the existing 670-kilometre pipeline with five new compressor stations. The export terminal and pipeline are one commercial proposition: gas needs capacity to reach Kitimat before it can reach buyers.
For Ottawa, the case for LNG is more than another prestige project: capital, skilled work, export choice for Asian buyers and potential public revenue.
From the newsReuters reports that commercial operations are targeted for the early 2030s. LNG Canada’s release gives no total Phase 2 cost or firm construction timetable. A final investment decision is a major commitment, but it is not an operating plant. LNG Canada, together with the governments of Canada and British Columbia, estimates that the project could generate more than $50 billion in public revenue over its life, without specifying currency. That is a forecast, dependent on delivery, prices, production and tax arrangements.
A concrete partnership claim is worth watching. LNG Canada says an equity option of up to C$1 billion may be invested through MNT Investments LP, which represents five neighbouring First Nations, in an entity to purchase the future storage tank. The option is capped at that amount, not a completed investment. CBC reports that critics warn of higher emissions and that pipeline construction has faced Indigenous opposition. Those concerns deserve transparent emissions accounting, meaningful local agreements and public reporting on cost and schedule.
For Ottawa, the case for LNG is more than another prestige project: capital, skilled work, export choice for Asian buyers and potential public revenue. The standard of proof should match the ambition. Measure delivered capacity, local terms and actual receipts, not forecasts alone. Predictable approvals and clear accounting of climate costs let a real investment compete without pretending its risks vanish.
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