Kitimat, B.C. — August 1, 2025
Fluor Corporation and JGC Corporation have officially been awarded the Front-End Engineering and Design (FEED) contract for the proposed Phase 2 expansion of the LNG Canada facility in Kitimat, British Columbia, marking a significant step toward doubling Canada’s LNG export capacity.
The joint venture between Fluor and Japan’s JGC — who successfully delivered Phase 1 of LNG Canada’s export project — will now be responsible for advancing engineering and design work for the potential second train. If greenlit, this phase would increase production capacity from 14 million tonnes per annum (mtpa) to approximately 28 mtpa, solidifying Canada’s position as a major player in the global LNG supply chain.
The contract value was not disclosed, but Fluor confirmed the award is recognized in its second quarter 2025 financial results, released today.
“We are proud to continue our partnership on one of the most important energy projects in Canadian history,” said Jim Breuer, President of Fluor Energy Solutions. “Phase 2 will build on the successful modular execution strategy we implemented during Phase 1, maintaining safety, sustainability, and schedule as top priorities.”
A Continuation of a Landmark Project
LNG Canada, a consortium led by Shell (40%) and supported by Petronas (25%), PetroChina (15%), Mitsubishi (15%), and KOGAS (5%), is the first major LNG export project in Canada. Located on the west coast, its Kitimat terminal offers year-round ice-free shipping and a direct path to Asian markets — a key advantage in today’s competitive global LNG landscape.
The JV of Fluor and JGC was originally selected in 2018 to execute engineering, procurement, fabrication, construction, and commissioning for Phase 1. That phase is nearing completion and is expected to be operational in 2026.
The FEED work for Phase 2 will lay the technical and commercial groundwork for a Final Investment Decision (FID), which could be announced as early as late 2026, depending on market conditions and partner alignment.
A Strategic Win for Canada’s LNG Sector
The expansion is being closely watched by energy analysts and industry stakeholders, who see Phase 2 as a pivotal move in Canada’s efforts to decarbonize global energy supply chains while tapping into growing demand from Asia.
Unlike many global projects, LNG Canada emphasizes a low-carbon footprint, leveraging clean BC hydroelectricity and modernized modular construction techniques to minimize emissions. Fluor and JGC’s continued involvement ensures continuity, technical expertise, and efficiency.
“This expansion not only boosts export potential, but it signals that Canada is serious about securing long-term energy partnerships with the world,” said LNG analyst Priya Sanghera of Energy Frontiers Research Group.
Final Decision Still Pending
Although the FEED contract has been awarded, LNG Canada Phase 2 is not yet fully approved. A final investment decision will depend on several factors, including construction economics, energy market dynamics, regulatory approvals, and stakeholder consultations with Indigenous communities.
Still, today’s announcement represents a major forward step, and positions Kitimat at the heart of Canada’s energy future — with the potential to unlock billions in economic activity and thousands of jobs across British Columbia and Alberta.
