Fluor's joint venture with JGC Corporation has been selected to build Phase 2 of LNG Canada's export terminal in Kitimat, British Columbia, the same scope of work the pair handled on Phase 1. The joint venture received notice to proceed after LNG Canada's partners reached a final investment decision on the expansion. Fluor will book its US$7.5 billion share of the contract in the third quarter of fiscal 2026.
What phase 2 adds
Phase 2 covers engineering, procurement, fabrication, construction and commissioning of an additional LNG storage tank and two new liquefaction trains, built next to the existing facility. The new trains will double LNG Canada's production capacity to about 28 million tonnes per annum.
Built on phase 1
The same joint venture delivered Phase 1, including engineering, procurement, fabrication management, construction and commissioning of two processing trains and related infrastructure. That facility began producing LNG in June 2025, and handover to LNG Canada was completed in October 2025.
Fluor chief executive Jim Breuer called Phase 1 "a landmark achievement for Fluor." He said moving ahead with Phase 2 shows confidence that Canada can keep developing its natural gas resources and ship them to buyers abroad, and that the team will carry forward what it learned on Phase 1. Pierre Bechelany, Fluor's business group president for energy solutions, said "Reaching FID is an important milestone for LNG Canada and Fluor." He said the venture's focus through construction will be safety, quality and working with its partners, First Nations and local communities.
Who owns the project
LNG Canada sits on Canada's west coast, where the site has access to natural gas supply and an ice-free deepwater harbor. The facility is owned by:
- Shell: 40%
- PETRONAS: 25%
- PetroChina: 15%
- Mitsubishi Corporation: 15%
- KOGAS: 5%
The Phase 2 construction work is being carried out under a separate joint venture, JGC Fluor BC LNG II JV, split evenly between Fluor Canada Ltd and JGC Constructors (No2) BC Ltd.
We reported last month that Shell took a final investment decision on a Bahamas LNG terminal.
