LNG Canada Phase 2

Proponent

LNG Canada

Sector

Energy

Location

Kitimat, British Columbia

Proponent

LNG Canada

Sector

Energy

Location

Kitimat, British Columbia

Description

This project will expand LNG Canada’s liquefied natural gas (LNG) facility, doubling production and delivering low-carbon intensity Canadian energy to global markets. It will also help diversify Canada’s trading partners, including those with growing demand in Asia and Europe.

Located in Kitimat, British Columbia, on the traditional territory of the Haisla Nation, the export facility benefits from abundant, low-cost Canadian natural gas and an ice-free harbour. This location provides a secure supply of LNG at scale and connects Canadian natural gas to global markets.

LNG Canada Phase 2 represents an opportunity to strengthen Canada’s position as a reliable energy supplier, attract significant private investment, contribute to our GDP growth, and create thousands of good jobs in local communities across the supply chain.

Description

This project will expand LNG Canada’s liquefied natural gas (LNG) facility, doubling production and delivering low-carbon intensity Canadian energy to global markets. It will also help diversify Canada’s trading partners, including those with growing demand in Asia and Europe.

Located in Kitimat, British Columbia, on the traditional territory of the Haisla Nation, the export facility benefits from abundant, low-cost Canadian natural gas and an ice-free harbour. This location provides a secure supply of LNG at scale and connects Canadian natural gas to global markets.

LNG Canada Phase 2 represents an opportunity to strengthen Canada’s position as a reliable energy supplier, attract significant private investment, contribute to our GDP growth, and create thousands of good jobs in local communities across the supply chain.

Quick facts

Global LNG leader: Expected to become the second-largest liquefied natural gas facility worldwide.
Job creation: Provides employment opportunities in local communities, both during construction and once fully operational.
Economic boost: Expected to attract $33 billion in private-sector capital to Canada.

Benefits

Supports Canada’s transition to a cleaner energy future.
The Haisla Nation, with a population of over 2,000, are expected to see direct benefits through employment opportunities for its members and broader economic growth for the region.
Will support jobs both during construction and when fully operational, promoting economic growth in the local community and in upstream gas production.
Will attract private-sector capital to Canada, directly contributing to GDP growth.

Latest updates

On March 27, 2026, LNG Canada and the owners of the Coastal GasLink pipeline announced a joint agreement to cooperate on an expansion of the pipeline's capacity that would enable LNG Canada Phase 2. LNG Canada would take an active role in the development of the pipeline, while Coastal GasLink would take on a technical support role.
On September 11, 2025, the project was referred to the Major Projects Office (MPO).
Budget 2025 includes measures to enhance the competitiveness of Canadian LNG projects, such as LNG Canada Phase 2.
- Amendments to the Canadian Energy Regulator Act will extend the maximum length of LNG export licences from 40 to 50 years, providing greater certainty for proponents on their ability to receive long-term returns on investments. Bill C-15, which included the amendment to the Canadian Energy Regulator Act, received royal assent on March 26.
- Reinstating accelerated capital cost allowances (CCAs) for LNG equipment for low-carbon LNG facilities is intended to incentivize the development of best-in-class, low-emissions LNG facilities. LNG Canada Phase 1 entered production in the summer of 2025, exporting its first shipment of LNG in June 2025 to Asian markets.
Ahead of Phase 2, the Canada Energy Regulator has granted LNG Canada an annual volume limit increase to its LNG export licence.