Fluor Corporation’s joint venture with JGC Corporation has been selected to deliver engineering, procurement, fabrication, construction and commissioning for LNG Canada’s Phase 2 expansion, following the project’s final investment decision (FID). Fluor will recognize its $7.5 billion share of the multibillion-dollar contract, which aims to double the facility’s production capacity to approximately 28 million tonnes per annum.
The LNG Canada project, a joint venture comprised of Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), and KOGAS (5%), marks a pivotal moment in Canada’s energy sector. The Phase 2 expansion, set to be built adjacent to the existing facility in Kitimat, British Columbia, will include an additional LNG storage tank and two new liquefaction units, known as trains. This follows the successful completion of Phase 1, which began producing LNG in June 2025 and was fully handed over in October 2025, according to markets.ft.com.
Project Expansion and Stakeholders
The $30-billion-plus Phase 2 expansion, anticipated to attract billions in private investment, is positioned to meet surging global demand for reliable LNG. The project’s scale and strategic location on Canada’s west coast—benefiting from abundant natural gas resources and an ice‑free deepwater harbor—highlight its potential to strengthen Canada’s position as a leading LNG exporter.
The joint venture executing Phase 2, JGC Fluor BC LNG II JV, is composed of Fluor Canada Ltd (50%) and JGC Constructors (No2) BC Ltd (50%), as reported by markets.ft.com. Fluor’s role in the project builds on its successful delivery of Phase 1, which included engineering, procurement, fabrication management, construction, and commissioning of two processing trains and associated infrastructure, per markets.ft.com. This collaboration highlights the project's emphasis on safety, quality, and collaboration with partners, First Nations, and local communities, though challenges remain in addressing environmental and social concerns.
Quotes from Company Leaders
Jim Breuer, Chief Executive Officer of Fluor, emphasized the significance of the FID, stating, LNG Canada Phase 1 was a landmark achievement for Fluor, and we are excited to carry that momentum into the next chapter. The decision to proceed with Phase 2 reflects confidence in Canada’s ability to responsibly develop its natural gas resources and connect them with global markets.
Pierre Bechelany, Fluor’s Business Group President of Energy Solutions, added, Our long-standing relationship and successful delivery of Phase 1 provides a strong foundation for the work ahead. As construction progresses, our focus will remain on safety, quality and collaboration with our partners, First Nations and local communities.
The project’s approval comes amid heightened global energy demand, exacerbated by supply chain disruptions in the Middle East and Europe’s search for alternative gas sources. Analysts note that LNG Canada’s expansion could position Canada as a critical player in the global energy market, though political and environmental hurdles persist.
Political and Economic Context
Prime Minister Mark Carney and Natural Resources Minister Tim Hodgson were scheduled to attend the announcement, reflecting the project’s national significance. However, Carolyn Svonkin, spokesperson for Mr. Hodgson, declined to comment, citing ongoing internal reviews. The project’s approval through the Major Projects Office (MPO) highlights its strategic importance, with the MPO citing its potential to diversify Canada’s energy exports and reduce reliance on the U.S. market.
The expansion also aligns with broader energy policy goals, including leveraging Canada’s natural gas reserves to meet international demand. Last September, U.S.-based MidOcean Energy acquired a 20-per-cent interest in key Petronas assets in Canada, signaling growing international interest in the region’s energy sector.