LNG Canada Phase 2 expansion in Kitimat greenlights $33 billion private investment
Prime Minister Carney announced the go-ahead for doubling production capacity, making the facility the world's second-largest of its kind.
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Prime Minister Mark Carney announced Tuesday that LNG Canada's Phase 2 expansion will move forward in Kitimat, unlocking $33 billion in private investment and positioning the facility to become the world's second-largest liquefied natural gas plant.
Phase 2 will double annual production from 14 million to 28 million tonnes. The expansion includes two new processing units, one LNG storage tank, one additional loading berth, and supporting equipment. Construction is expected to create up to 4,000 jobs at peak, with approximately 90 permanent positions and 150 contractor roles after completion.
Carney said the project reflects "Canada building big and bold again," adding it will "connect low-cost, low-carbon Canadian energy to global markets." LNG Canada CEO Chris Cooper said the project "demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together."
The expansion clears the way for a separate capacity increase on the Coastal GasLink pipeline, the 670-kilometer line that carries natural gas to the LNG facility. Phase 1 began exporting in June 2025.
Skeena-Bulkley Valley Conservative MP Ellis Ross, former chief councillor of the Haisla Nation, cautioned against crediting politicians, calling it "a nothingburger." He said local Indigenous leaders deserve recognition for decades of work advancing the LNG industry. The project drew support from both the BC NDP and Conservative Party during the provincial election campaign, though the parties offered different accounts of the provincial government's handling of the sector.
What environmental assessments or conditions are attached to the expansion?
How will the project address Indigenous consultation requirements beyond current commitments?
We'll update this story as answers emerge.
By the numbers
How much will the LNG Canada Phase 2 expansion cost?
$33 billion in private investment will fund the LNG Canada Phase 2 expansion in Kitimat.
What will Phase 2 do to the facility's production capacity?
Phase 2 will double LNG Canada's annual production from 14 million to 28 million tonnes, making it the world's second-largest liquefied natural gas plant.
How many jobs will the expansion create?
Construction is expected to create up to 4,000 jobs at peak, with approximately 90 permanent positions and 150 contractor roles after completion.
