What You Need to Know
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. Through an agreement with MNT Investments LP, five First Nations – the Gitga’at, Gitxaała, Haisla, Kitselas and Kitsumkalum – have an option to invest up to $1 billion to acquire a majority ownership stake in the facility’s new Phase 2 LNG storage tank, establishing First Nations as core infrastructure owners and long-term economic partners on the North Coast.
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, TC Energy has also reached an FID on Coastal GasLink Phase 2, which will double the pipeline’s capacity and create over 2,000 jobs, with construction beginning next year.
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.
Key Messages
Canada is building big again. LNG Canada Phase 2 is a major vote of confidence in Canada’s ability to attract investment and get major projects built.
This investment will strengthen Canada’s economy, create thousands of jobs, and expand our ability to get Canadian energy to global markets.
The project was referred to the Major Projects Office in September 2025, and has received dedicated support to quickly and efficiently move toward an investment decision.
LNG Canada Phase 2 will help diversify Canada’s trade by strengthening our ties across the Indo-Pacific and supplying reliable Canadian energy to partners in Asia and Europe.
Indigenous partnership is central to this project, with billions of dollars in contracts already awarded to First Nations and local businesses, along with new opportunities for Indigenous equity ownership.
By doubling LNG Canada’s export capacity, we are turning Canada’s world-class resources into long-term prosperity while supplying some of the lowest-emitting LNG in the world.
This is what building a stronger, more independent Canadian economy looks like: attracting private capital, creating good jobs, diversifying trade, and getting major projects built.
