On Tuesday, September 29, 2026, LNG Canada announced a positive final investment decision to proceed with Phase 2. 

Updated with TC Energy release)

LNG Canada

LNG Canada Announces Positive Phase 2 Final Investment Decision

LNG Canada today announced that its Joint Venture Participants (JVPs) – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have taken a Final Investment Decision (FID) on the LNG Canada Phase 2 expansion project in Kitimat, British Columbia, in the traditional territory of the Haisla Nation. The decision marks the next step in LNG Canada’s development as a British-Columbia-based Project of National Significance, representing one of the largest private sector investments in Canada, building on LNG Canada’s Phase 1.

“LNG Canada Phase 2 is another nation-building investment that demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together with shared purpose. With FID secured, Phase 2 will double LNG Canada’s capacity from 14 to 28 million tonnes a year, putting LNG Canada on a trajectory to become one of the largest LNG facilities in the world and helping move Canada toward becoming one of the world’s top five LNG exporting nations,” said Chris Cooper, President and CEO, LNG Canada. “But Phase 2 is about much more than tonnes. It will create thousands of jobs and further strengthen Canada’s role as a trusted energy partner, bringing more responsibly produced Canadian LNG to global markets while supporting long-term prosperity at home.”

“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 on that,” said the Honourable Tim Hodgson, Canada’s Minister of Energy and Natural Resources. “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: catalyzing private capital, diversifying trade, strengthening global energy security, fostering Indigenous partnership, and turning our world-class resources into Canadian lasting prosperity. Canada is building again — and the world is taking notice.”

The Phase 2 expansion will add two additional LNG processing units, known as trains, within LNG Canada’s existing Kitimat facility, increasing total production capacity from 14 to 28 mtpa. Phase 2 includes an additional LNG storage tank, condensate tank, loading berth, expanded utility and process systems. LNG Canada has also entered into commercial agreements to act as execution manager, working with Coastal GasLink to expand the capacity of the existing 670-kilometre pipeline through the construction of five new compressor stations. Phase 2 builds on the current Phase 1 footprint and infrastructure that were designed and engineered from the outset to support the first large-scale, four-train LNG export facility in Canada.

On July 14, 2026, LNG Canada announced a landmark equity option agreement with MNT Investments LP, a limited partnership of the economic development organizations of five First Nations neighbouring LNG Canada’s operations: Gitga’at Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation and Kitsumkalum First Nation. Today’s Phase 2 decision enables the implementation of that equity option through an investment of up to $1 billion (CAD) in a special purpose entity that will purchase the future LNG storage tank to be built as part of Phase 2. The transaction represents one of the largest Indigenous ownership positions in major Canadian infrastructure.

Together with the Governments of B.C. and Canada, LNG Canada estimates Phase 2 has the potential to generate more than $50 billion in government revenues over the life of the project, including direct spend, taxes, royalties and other government revenues generated through direct and indirect economic activity associated with Phase 2. LNG Canada’s initial construction created significant employment opportunities in B.C. and across Canada with more than 50,000 Canadians contributing to the delivery of Phase 1, while the connecting Coastal GasLink (CGL) pipeline employed more than 25,000 Canadians.

At peak construction, Phase 2 is expected to host up to 4,000 new construction jobs in Kitimat, alongside approximately 2,100 jobs required to build new compressor stations along the CGL pipeline. As with Phase 1, Phase 2 will rely on tens of thousands of skilled tradespeople working safely to complete the project. This activity supports additional employment, contracting and business opportunities in communities across Northern B.C. and supply chains connected to the Phase 2 expansion, creating significant indirect economic benefits alongside the thousands of jobs on-site and along the pipeline. When complete, LNG Canada will add approximately 90 full-time roles and 150 contractor positions to its existing operational workforce in Kitimat, which currently totals over 400 permanent full-time jobs.

LNG Canada will continue to operate under an equity lifting structure, where each of its five Joint Venture Participants is responsible for the offtake of its proportionate share of LNG produced.

Quotes from LNG Canada’s Joint Venture Participants:

Cederic Cremers, President, Integrated Gas, Shell – “The LNG Canada Phase 2 Final Investment Decision marks an important milestone built on years of collaboration among governments, First Nations, local communities, the supply chain and our joint venture partners,” said Cederic Cremers, Shell’s Integrated Gas President. “As global LNG demand grows, LNG Canada is well positioned to provide secure, reliable, and flexible energy to customers in Asia. Phase 2 strengthens Canada’s role as a competitive energy supplier while creating economic benefits for British Columbia and Canada.”

Adif Zulkifli, EVP & CEO Gas & Maritime Business, PETRONAS – “The Final Investment Decision for Phase 2 is a significant step forward in our shared ambition to deliver reliable and responsibly produced LNG to the world. It demonstrates what can be achieved through strong partnerships, disciplined execution and a long-term commitment to mutual value creation. PETRONAS is proud to contribute its LNG experience and global market reach as we advance this important development together,” said Adif Zulkifli, EVP & CEO Gas & Maritime Business, PETRONAS.

Mr. Zhiyong Liu, President and CEO of PetroChina Company Limited – “PetroChina is proud to be amongst the experienced joint venture participants that approved Phase 2 of LNG Canada today,” said Mr. Zhiyong Liu, President and CEO of PetroChina Canada Ltd., “PetroChina is committed to the safe and efficient development of our diversified oil and gas and new energy portfolio. LNG Canada Phase 2 will contribute to achieving our goal of stabilizing global energy supply and providing the low-carbon energy the world needs.”

Masaru Saito, Group CEO, Energy & Power Solution Group, Mitsubishi Corporation – “LNG Canada Phase 2 represents a significant investment in the future of responsible and reliable energy supply,” said Masaru Saito, Group CEO, Energy & Power Solution Group, Mitsubishi Corporation. “Together with our partners, we are helping meet growing global energy needs, supporting economic growth in Canada, and enhancing energy security in Japan and Asia. The continued development of LNG Canada will create long-term value for customers, communities, and stakeholders.”

Hong Eui-rak, President and CEO of KOGAS – “The LNG Canada Phase 2 Final Investment Decision marks an important milestone that builds on the successful delivery of Phase 1,” said Hong Eui-rak, President and CEO of KOGAS. “KOGAS is proud to be part of this landmark project. Together with our Joint Venture Participants, governments, First Nations and local communities, we look forward to delivering Phase 2 safely and successfully, helping connect reliable LNG supply with growing energy demand across Asia.”

Shell

Shell takes final investment decision to double LNG Canada capacity

Calgary − Shell Canada Energy, an affiliate of Shell plc ("Shell"), today announced a final investment decision on LNG Canada Phase 2, which will double production capacity at the facility in Kitimat, British Columbia.

"LNG Canada is a core part of our Integrated Gas portfolio, helping to supply LNG to customers in Asia at a time when diversity of energy supplies and energy security are increasingly important,” said Cederic Cremers, Shell’s Integrated Gas President. “Phase 2 supports Shell’s strategic objective to be the world’s leading integrated gas and LNG business by connecting Canadian resources with Shell’s global LNG portfolio, trading capability and customer reach.”

Phase 2 will add two LNG processing units, known as trains, increasing LNG Canada’s total production capacity from 14 million tonnes per annum (mtpa) to 28 mtpa. Shell has a 40% interest in LNG Canada and will receive nearly 6 mtpa of additional LNG from the expansion. Commercial operations are expected to begin in the early 2030s.

The investment is consistent with Shell's disciplined capital allocation framework and is expected to generate double-digit returns while supporting long-term cash flow growth.

The facility in Kitimat is positioned to supply cost-competitive gas to Asian markets, where demand for LNG is expected to increase significantly. According to Shell's LNG Outlook 2026, global LNG demand is expected to rise by around 60% by 2040 and around 65% by 2050, driven by growing energy demand and the need for secure, flexible and reliable energy supplies.

District of Kitimat

Kitimat welcomes news of announced Phase 2 expansion for LNG Canada

September 29, 2026

The District of Kitimat welcomes today’s positive decision to proceed with LNG Canada’s Phase 2 expansion.

This decision further emphasizes the value of Kitimat as a strategic energy hub for Canada and for the world, demonstrating that we are an attractive and effective location for major industrial investment.

“The District of Kitimat has worked closely with LNG Canada through their concept, their construction of Phase 1 and now into their operations,” says Kitimat Mayor Phil Germuth. “Today’s announcement continues to strengthen our relationship, supporting a development that brings employment to the region and contributes to the growth of our community, province and nation at large.”

In September 2025, LNG Canada’s Phase 2 expansion was selected as one of the first nation-building projects referred to the federal Major Projects Office (MPO). The enhanced investment co-operation agreement between the Government of British Columbia and Government of Canada in 2026 further highlights its importance to Canada.

With the construction of Phase 1, the announcement of a final investment decision for Phase 2 expansion, and the ongoing work to construct the Haisla-led Cedar LNG project, Kitimat is home to projects worth tens of billions of dollars.

Kitimat is situated on a deep-water, ice-free channel offering faster year-round trans-Pacific travel to Asian markets than other ports. The community is further served by rail and the Northwest Regional Airport Terrace-Kitimat (YXT). It is home to the Rio Tinto aluminum smelter and Canada’s major LNG companies which together provide high-paying jobs to thousands of people.

Prime Minister of Canada

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

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.

Joint news release from some environmental and First Nations groups

The LNG industry has no business case in Canada, without public subsidies

VANCOUVER, BC | September 29, 2026 | A broad spectrum of civil society organizations—spanning the sectors of finance, climate, environment, health, and Indigenous nations—highlight that today’s decision to expand the foreign-owned LNG Canada, a high-carbon project that has been plagued by severe operating issues, was only made possible with generous public subsidies that transfer national wealth to private foreign investors, leaving Canadians to carry the full health and economic burdens of this project. Without public subsidies, the LNG industry has no business case in Canada.

Any tepid demand for Canadian LNG expressed by foreign leaders—including, most recently, those in Germany and France—reflects their interest in securing the lowest possible purchase price as they phase out fossil fuels. For Canada, continuing to subsidize access to natural gas at artificially low prices is a losing economic proposition that leaves Canadians to bear even greater financial risk and higher debt.

There are no regulatory requirements for either phase of LNG Canada to use electricity to liquefy the fossil gas at the export facility. Every year, the high-carbon facility is expected to release four million tonnes of greenhouse gas emissions, equivalent to adding 900,000 new gas powered cars to Canada's roads for every single year of operations.

Statements by Ottawa and B.C. that LNG Canada will be 60 per cent cleaner than the global average for LNG production assumes partial electrification of the total facility (Phase 1 and Phase 2), which does not exist.

Asian demand for LNG is projected to decline, for the second consecutive year, by up to 10 per cent in 2026, according to analyst forecasting in September. According to the International Energy Agency, Chinese natural-gas demand fell an estimated 4 per cent year-over-year between March and June 2026, with LNG imports declining 12 per cent. In the European Union, renewables provided more than half (54 per cent) of all electricity—led by solar power—in Q2 of 2026, and the German government committed last week to phase out fossil fuels by 2045.

Canadians have already paid over $30 billion for the purchase of the Trans Mountain pipeline because of insufficient private-sector participation, and today the federally-owned Trans Mountain Corp. has a second $40-billion crude oil pipeline proposal, in partnership with the Alberta government, poised to become a project of national importance later this week.

The Carney administration has already committed billions in public subsidies to LNG Canada this year:

In September, Ottawa announced new ‘Mega Deductions’ that include 100 per cent capital cost allowance deductibles for liquefaction equipment used in LNG facilities, and the marginal tax rate for new gas pipelines was halved to the lowest rate of any major economy in the world. Forgone government tax revenue is an indirect public subsidy that benefits the LNG industry, not every day Canadians.

In July, Ottawa committed a further $3.9 billion dollars to the North Coast Transmission Line in B.C. The majority of the clean electricity is slated for use by LNG export facilities—specifically Canada Phase 2, Ksi Lisims LNG and Cedar LNG—to alleviate fewer than 10 percent of LNG’s lifecycle emissions.

In May, Export Development Canada (a federal Crown corporation) provided a $400-million loan to New-York headquartered MidOcean, in addition to $300 million in December 2025, facilitating its 20 percent equity purchase in LNG Canada from Malaysia’s Petronas. MidOcean is backed by EIG, an institutional investor based in Washington, D.C., and by Saudi Arabia’s state-owned oil company Aramco.

LNG Canada’s Phase 1 provides only 300 permanent, full-time jobs, with Phase 2 creating only an additional 90 permanent jobs.

Today’s decision also triggers Phase 2 of the Coastal GasLink pipeline, which will double the amount of gas the 670-kilometre pipeline can transport to LNG Canada through five additional compressor stations and facility upgrades. The pipeline lacks the Free, Prior and Informed Consent of the Wet’suwe’ten Hereditary leadership.

Currently, there are two LNG projects under construction in British Columbia, including Woodfibre LNG that has plans to triple in size. A further two projects, including the large, American-owned Ksi Lisims LNG, are fully permitted. Ksi Lisims LNG and its associated Prince Rupert Gas Transmission (PRGT) pipeline continue to face Indigenous consent concerns, while the decision that kept alive PRGT’s decade-old environmental assessment certificate remains the subject of active litigation.

QUOTES

Chief Na’Moks, Hereditary Chief of the Tsayu (Beaver Clan) of the Wet’suwet’en Nation

“Wet’suwet’en law was here long before Canada existed. It doesn’t disappear because Ottawa or Victoria decides a project is in the national interest. Governments don’t get to make decisions about our lands and then come back afterward and call that consultation. Our hereditary system has governed these territories for thousands of years. If Canada is serious about reconciliation, then respect our law, respect our title and get our consent before pushing another project through our territory out of economic desperation.”

Gwii Lok'im Gibuu (Jesse Stoeppler), member of Wilp Spookwx of the Gitxsan Nation and Co-Executive Director of Skeena Watershed Conservation Coalition

“Free, Prior and Informed Consent comes before a project moves forward, not after. David Eby and Mark Carney keep touting LNG as nation building, while foreign owners buy in and governments put more public resources on the table to make these projects work. That isn’t nation building, it's selling out. Canada cannot keep extracting resources from Indigenous lands first and dealing with consent later. No further expansion should move ahead without the Free, Prior and Informed Consent of all title holders.”

Eve Saint, Financial Divestment Campaigner for Gidimt’en Checkpoint and Co-founder of 8th Fire Rising

“We should be very concerned about how the Carney government is advancing Projects of National Interest by changing laws and introducing legislation such as Bill C-39 to fast-track major projects without ensuring proper Free, Prior and Informed Consent from Indigenous Peoples or rigorous environmental assessment. LNG Canada Phase 2 is a prime example. We’re already seeing major problems, including a flare stack emitting well beyond permitted levels and Kitimat residents living with chemical smoke. Instead of addressing those problems first, the government is pushing ahead with an expansion that could leave even worse environmental and health impacts on our communities for generations. This is not just an Indigenous issue. It affects all of us, and that should concern everyone.”

Sleydo’ (Molly Wickham), Wing Chief of the Cas Yikh, Wet’suwet’en Gidimt’en checkpoint

“Celebrating the development of LNG Canada phase 2 is indicative of Canada's and foreign investors’ failure to provide accurate risk threat level assessments from Indigenous communities who have not provided their free, prior and informed consent to this project and those associated with it. As history has revealed, when Indigenous Peoples and our allies feel backed into a corner, national economies and infrastructure can be easily impacted by resistance efforts, costing billions of dollars to government and industry. With this in mind, putting money into projects that obstruct Indigenous rights and title should be seen as a serious liability to returns on investments. I imagine Indigenous communities are preparing for the onslaught of Eby and Carney's mega projects as we speak.”

Thomas Green, economist, Senior Manager, Climate Solutions, David Suzuki Foundation

“Countries in Asia and Europe are protecting their economies by decoupling from volatile fossil fuel prices set on international markets, and electrifying with low-cost renewable power and efficient technologies. Yet here in Canada, the Carney government is once again working for billionaires by choosing volatile fossil fuel exports over an economy that works for its people. Foreign-owned LNG Canada is not a low-carbon and future-proof solution. It will export wealth abroad while driving climate pollution. Once combusted abroad, the methane gas we export will boomerang back on us through wildfires, smoke and other extreme weather. Propping up LNG Canada does nothing to buffer our economy from the United States. It leaves taxpayers exposed to the costs of another project likely to become a stranded asset, while private companies pop their champagne at the public's expense.”

Kai Nagata, Energy Campaigner, Dogwood

“Doubling LNG exports will raise energy costs for households and businesses across B.C., while more and more of the profits flow to foreign companies. Our gas bills are going up, our hydro bills are going up, and yet this industry pays little in royalties and even less in taxes. Our politicians are giving away a public resource while B.C. families slide deeper into economic insecurity.”

Richard Brooks, Climate Finance Director, Stand.earth

"Expanding malfunctioning LNG Canada is like betting on a concrete canoe at a sailing regatta. As the rest of the world rapidly scales up clean energy infrastructure, global gas demand destruction is underway. It's happening regardless of the desires of the Carney government, gas companies, and Trump-friendly private equity firms. Real federal government leadership should be about ratcheting up investments towards accelerating clean energy projects which will have better long-term returns and will not worsen extreme weather events while respecting Indigenous rights.”

Dr. Melissa Lem, Vancouver family physician and past president, Canadian Association of Physicians for the Environment

“LNG Canada has been malfunctioning since it started operations, and routinely surpasses its emissions permits. Bad behaviour is being rewarded: expansion is advancing while health and regulatory questions go unanswered. The profits of wealthy U.S. private equity firms and global oil and gas companies are being prioritized over the health of people in Canada. We need clean air to breathe and a stable climate, not health systems overwhelmed by the consequences of fossil fuel expansion.”

Tracey Saxby, Executive Director, My Sea To Sky

“Canada’s LNG is not low-carbon, and the few regulations that the Prime Minister hasn’t rolled back won’t require it to be. Both phases of LNG Canada will run on gas. Low-carbon Canadian LNG is nothing more than a fictitious government talking point. LNG is a fossil fuel that is harmful to nearby communities and the climate.”

Isabel Siu-Zmuidzinas, Climate Campaigner, Wilderness Committee

“Europe’s interest in Canadian LNG is security of supply as it phases out fossil fuels, but this demand is soft, it's for small amounts, and it’s not locked in. Let’s be clear: Europe wants Canada to enable complicated swaps of LNG cargos to benefit Europe. This is more of the smoke and mirrors of LNG, an industry that requires public financing for private-sector companies to want to invest in it. That says a lot about its profitability.”

Andrew Dumbrille, Co-Director, Equal Routes

“With the expansion of export facilities in BC, LNG mega shipping tankers will increase dramatically: this project equates to as many as 350 LNG tanker transits each year, bringing total yearly tanker traffic for LNG Canada to around 700 transits per year. This means significant safety risks to people and wildlife on BC’s North Coast. Premier Eby continues failing to consider detrimental downstream impacts caused by LNG export.”

Alex Walker, Energy Analytics Program Manager, Environmental Defence Canada

“Today’s announcement of the final investment decision in LNG Canada Phase 2 is another example of what has become the hallmark of Prime Minister Carney’s “nation-building” agenda: taxpayer money going to foreign investors for a project that makes life worse for Canadians. LNG Canada Phase 2 will double the capacity of a facility that is already violating its environmental permit requirements, including releasing record-breaking quantities of polluting, carcinogenic smoke into the community of Kitimat. In 2025, LNG Canada Phase 1 flared more polluting gas into the atmosphere than any other facility in the world. Doubling this problem before trying to fix it isn't nation-building; it’s reckless.”

Wyanne Sandler, Co-Director, For Our Kids

"Expanding LNG Canada is a betrayal of our children and the next generations. As most of the world moves away from fossil fuels, the Canadian government continues to make investments that lock our children into the economic and environmental consequences of subsidizing a dying industry that is fueling extreme weather and harming our health, instead of investing in the nation building projects our children and our communities actually need, like education, healthcare, public transit, renewable energy and affordable housing."

Notes to editor:

LNG Canada started exporting LNG cargoes in mid-2025, and has continuously been in violation of its emissions permit due to uncontrollable flaring and black smoke that rendered the main flarestack unusable.

LNG has been further cited for non-compliance because 79 per cent of its LNG carrier transits over a six-month period exceeded speed restrictions along the North Coast.

LNG Canada—the export terminal and the CGL pipeline—cost a combined $40 billion, with the CGL pipeline costing more than double the project estimate.

Coastal GasLink Phase 2 to proceed following LNG Canada Final Investment Decision