When Ottawa unveiled its list of fast-tracked “nation-building” projects earlier this month, LNG Canada Phase 2 stood out. The Kitimat-based expansion project, led by Shell and international partners, is now being positioned not just as an energy investment, but as a strategic pillar in Canada’s industrial and trade future.
Why LNG Canada qualifies
The federal government’s new “Major Projects Office” is meant to fast-track developments of national significance — projects that create jobs, attract billions in private investment, and strengthen trade ties. LNG Canada checks those boxes. Phase 2 alone could draw $33 billion in investment, giving Canada a stronger foothold in Asia’s LNG market while diversifying away from U.S. export dependency.
The designation also signals Ottawa’s intent to show that Canada can still build world-class infrastructure, cutting regulatory delays to a maximum of two years while maintaining consultation obligations.
Phase 1 milestones
Phase 1, which shipped its first LNG cargo in mid-2025, brought $5 billion in contracts to B.C. businesses, including over $4 billion to Indigenous and locally owned firms. At full capacity, it will produce 14 million tonnes of LNG annually. The startup was not without cost and schedule challenges, but it demonstrated Canada’s ability to deliver on a project of global scale.
The road to Phase 2
The partners have already awarded a FEED (Front End Engineering & Design) contract for Phase 2. A final investment decision could arrive in late 2026 or early 2027, depending on global LNG demand, project economics, and alignment among the joint venture’s owners. Ottawa’s fast-track designation is designed to keep that timeline competitive.
For now, engineering work and regulatory preparation will unfold through 2025–2026. Market conditions — and whether Indigenous and environmental engagement is sustained — will shape whether Phase 2 proceeds on schedule.
Why it matters
LNG Canada has become the test case for Canada’s new approach to nation-building. If Phase 2 advances smoothly, it could prove that Canada can reconcile energy development with climate obligations, attract global capital, and deliver jobs at scale. If it falters, doubts about Canada’s ability to execute megaprojects will only deepen.
For a country seeking to reassert itself as a serious industrial player, LNG Canada is more than a terminal — it’s a statement of intent.