Prime Minister Carney welcomes LNG Canada Phase 2, the second-largest single private investment in Canadian history

VANCOUVER, BC, Sept. 29, 2026 /CNW/ — In a more dangerous and divided world, a confident Canada is choosing to build. We are accelerating major projects – new ports, mines, energy and trade corridors – that will responsibly unlock our resources, connect our economy, and get our exports to markets around the world faster. We are changing the way we build through the Building Canada Strong Act to give investors certainty and get shovels in the ground sooner, while maintaining Canada’s high standards.

In September 2025, Canada’s government referred LNG Canada Phase 2 to the Major Projects Office (MPO). Since then, the project has received dedicated support from the MPO to quickly and efficiently move toward an investment decision and the start of construction, including through partnerships with British Columbia and industry partners.

Today, the Prime Minister, Mark Carney, welcomed a significant milestone as LNG Canada reached a final investment decision (FID) on its Phase 2 expansion project in Kitimat, British Columbia. This decision unlocks a transformative $33-billion private sector investment that will make LNG Canada the second-largest facility of its kind in the world and strengthen Canada’s trade ties across the Indo-Pacific. Located on the traditional territory of the Haisla Nation, Kitimat benefits from access to abundant, low-cost Canadian natural gas and an ice-free harbour – connecting low-carbon Canadian energy to global markets and providing a secure supply of liquefied natural gas (LNG) to partners in Asia and Europe.

LNG Canada’s Phase 2 project will create more than 4,000 direct jobs in the construction phase alone and is being developed in full partnership with Indigenous Peoples. To date, the project has awarded nearly $5 billion in contracts and procurement to First Nations and local businesses across the region. Additionally, leveraging Canada’s clean electricity advantage, greenhouse gas emissions from LNG Canada’s Kitimat operation are expected to be lower than those of any facility of a similar size operating in the world today.

As a direct result of LNG Canada’s FID, the Prime Minister also welcomed TC Energy’s FID on the Coastal GasLink (CGL) Phase 2 project. This multi-billion-dollar investment will double the Coastal GasLink pipeline’s existing capacity by adding new compressor stations and upgrading facilities along the existing 670-kilometre route that brings natural gas from Dawson Creek to the LNG Canada facility. This project will allow Canada to maximise the value of the Western Canada Sedimentary Basin, one of the most prolific natural gas resource basins on the planet. CGL Phase 2 will strengthen Canada’s supply of reliable, affordable, and secure energy to global markets through LNG Canada Phase 2, while creating long-term value for Indigenous and local communities, customers, and shareholders. Construction will begin next year and is expected to create over 2,000 jobs.

Canada’s government is focused on building a stronger Canadian economy – one that is more independent, prosperous, and resilient to global shocks. LNG Canada’s investment decision demonstrates confidence in Canada’s competitive investment environment, our talent and expertise, and our ability to get major projects built.

Quotes
“The historic investments in LNG Canada are proof that Canada is building big and bold again. This facility reflects the best of Canadian ambition – built in partnership with Indigenous Peoples, it will export some of the lowest-emitting LNG to new markets in Asia. We are building our strength at home, securing new trade partners abroad, and catalysing unprecedented levels of new investment in our major projects. That is what an energy superpower looks like when it decides to act like one.”
— The Rt. Hon. Mark Carney, Prime Minister of Canada

“Today’s final investment decision for LNG Canada Phase 2 is a major step forward in Canada’s economic and clean energy ambitions. Since being referred to the Major Projects Office a year ago, this project has drawn on MPO’s combined expertise in business development and project execution within the government to move efficiently toward this decision. This project doubles LNG export capacity, supports Indigenous equity participation, strengthens Indo-Pacific trade, and creates jobs, proving what’s possible when we work together for a low-carbon future.”
— The Hon. Dominic LeBlanc, President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy

“LNG Canada’s decision to move forward with Phase 2 is a massive vote of confidence in Canada – and proof that not only does Canada have what the world wants, but we can get big projects built to deliver. At a time when our country must build a stronger economy that allows us to be an energy superpower for the long term, this is exactly the kind of investment Canada needs: catalysing private capital, diversifying trade, strengthening global energy security, fostering Indigenous partnership, and turning our world-class resources into lasting prosperity. Canada is building again, and the world is taking notice.”
— The Hon. Tim Hodgson, Minister of Energy and Natural Resources

Quick facts

• LNG Canada is a joint venture company comprised of Shell Canada (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), and KOGAS (5%). These global partners bring technical expertise, natural gas supply, and direct access to international trade networks.
• The cumulative value of the project’s contracts and subcontracts to local, Indigenous and other businesses in British Columbia continues to grow, including more than $4.9 billion to Indigenous-owned and local area businesses.
• LNG Canada’s decision builds directly on the success of its Phase 1 project, which began exporting low-carbon LNG in June 2025 – the first time LNG was ever exported from Canada directly to customers. LNG Canada Phase 2 will double the terminal’s capacity to 28 million tonnes annually.
• The Phase 2 expansion project advances historic Indigenous equity opportunities through an agreement with MNT Investments LP – representing the Gitga’at, Gitxaała, Haisla, Kitselas, and Kitsumkalum Nations. This agreement grants the five First Nations an option to invest up to $1 billion to acquire a majority ownership stake in the facility’s new 225,000-cubic-metre Phase 2 LNG storage tank. This sale-leaseback structure ensures long-term revenue streams for local communities, establishing First Nations as core infrastructure owners and long-term economic partners on the North Coast.
  • By displacing coal-fired power generation in overseas markets, the project directly supports international climate goals while expanding Canadian low-carbon energy exports.
• Over the course of its lifetime, Coastal GasLink has awarded more than $1.8 billion in contracts to Indigenous and local businesses and invested more than $13 million in local communities, non-profits, and sponsorships. Construction on Phase 1 created over 25,000 jobs and was completed with the support of 20 Indigenous communities along the project route, with long-term agreements that remain in place and continue to provide benefits.
• As a convener and single point of contact to get projects of national interest built efficiently and effectively, the MPO brings together people and processes to establish clear pathways through federal processes. The MPO’s team combines public and private sector experience, supported by federal government departments and agencies to support prudent decision-making by proponents, Indigenous Peoples, investors, and governments.

Related products

• Prime Minister Carney announces first projects to be reviewed by the new Major Projects Office
• Canada’s new government to simplify and accelerate Canada’s regulatory process
• Enhanced Investment Co-operation Advances Efforts Around LNG Canada’s Proposed Phase 2 Expansion
• Canada and British Columbia strike new cooperative prosperity partnership to build a stronger, more sustainable economy

Associated link

• Major Projects Office

This document is also available at https://pm.gc.ca

SOURCE Prime Minister’s Office

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