The provincial and federal government’s have reached an agreement to advance the LNG Phase 2 project in Kitimat.
The two levels of government announced Thursday that they have reached an agreement on enhanced investment co-operation and actions to collectively progress closure of final items to support a potential 2026 final investment decision around LNG Canada’s proposed Phase 2 expansion.
LNG Phase 2 was among the first projects to be reviewed by the federal government’s Major Projects Office.
The agreement has four mutual objectives for the provincial and federal governments:
• Work collaboratively with First Nations in LNG Canada’s proposed Phase 2 expansion
• Build on Canada’s competitiveness and investment climate – locally, provincially and nationally
• Build on Canada’s competitiveness and investment climate – locally, provincially and nationally
• Further diversify export markets and grow the secure supply of responsibly produced Canadian LNG to our allies – at scale – at a critical time, as Canada looks to build strong and solidify a stronger international trade network
Thursday’s agreement follows a decision on May 1 by LNG Canada’s joint venture participants to approve hundreds of millions of dollars in incremental funding to help finalize critical work scopes to achieve a potential FID by the end of the year, according to a joint release from the two levels of governments.
If the project continues to progress, the funds released by LNG would be used in further engineering, potential long lead item placement, progressing agreements with First Nations, finalization of commercial items across pipeline and supply chain as well as progressing construction work at LNG Canada’s marine offloading terminal.
Premier David Eby said from B.C.’s perspective there are key milestones for B.C., and one of those is the final investment decision. He said he’s been told that will be decided by the end of 2026.
He said that decision to release the hundreds of thousands of dollars is a “major vote of confidence for B.C.”