LNG Canada announced a final investment decision on Phase 2 on 28 September 2026, adding two liquefaction trains at its Kitimat, British Columbia, plant and lifting nameplate capacity from 14 to 28 million tonnes per year (mtpa). The Government of Canada put the private investment at CAD 33 billion in a release on 29 September. That works out at roughly CAD 2,360 of capital per tonne of annual capacity, an ENB calculation from the government figure.
What the final investment decision covers
The joint venture participants are Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. Phase 2 adds two trains inside the existing Kitimat facility, plus an LNG storage tank, a condensate tank and a loading berth. The government release adds that TC Energy took a final investment decision on Coastal GasLink Phase 2, which doubles the capacity of the 670 km pipeline from Dawson Creek to Kitimat.
Timeline
| Date | Event |
|---|---|
| September 2025 | Project referred to the Major Projects Office, per the government release |
| 28 September 2026 | LNG Canada announces the Phase 2 final investment decision |
| 29 September 2026 | Prime Minister’s office welcomes the decision |
The numbers behind the headline
| Metric | Value | Basis |
|---|---|---|
| Capacity after Phase 2 | 28 mtpa | Company announcement, double Phase 1 |
| Private investment | CAD 33 billion | Government of Canada release |
| Capital per tonne of annual capacity | about CAD 2,360 | ENB: CAD 33 billion divided by 14 mtpa |
| Direct construction jobs | more than 4,000 | Government release |
| Contracts to First Nations and local businesses to date | nearly CAD 5 billion | Government release |
| Indigenous equity option | up to CAD 1 billion | LNG Canada; about 3% of CAD 33 billion (ENB) |
The release does not say whether the CAD 33 billion includes the pipeline expansion. If it does, the plant-only cost per tonne is lower than CAD 2,360, so the figure is best read as an upper bound for the plant.
Indigenous equity
LNG Canada said it is offering an equity option of up to CAD 1 billion through MNT Investments LP, which represents the Gitga’at, Gitxaała, Haisla, Kitselas and Kitsumkalum nations. The money would go into a special purpose vehicle that buys the Phase 2 LNG storage tank. The company also claims government revenues of more than CAD 50 billion over the life of the project. That is a company estimate and ENB has not tested it.
Emissions arithmetic
The government release says the facility’s own emissions are expected to be lower than any similar size facility. That covers operations at the plant. Burning the gas is a separate ledger. Treating LNG as pure methane, combustion releases about 2.75 tonnes of CO2 per tonne of gas (44 divided by 16), an assumption ENB uses for scale only.
| Case | LNG capacity, mtpa | CO2 if burned, Mt per year |
|---|---|---|
| Phase 1 | 14 | about 38 |
| Phase 2 addition | 14 | about 38 |
| Both phases | 28 | about 77 |
What to watch
The sources reviewed give no start-up date for the new trains, no offtake split among the partners and no capital breakdown between plant and pipeline. Those three disclosures will decide whether CAD 2,360 per tonne holds up. For another large cross-Pacific energy commitment priced in the same week, see ENB’s analysis of the US Korea nuclear framework.
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