British Columbia Premier Supports LNG Canada Phase 2 Expansion

The British Columbia government wants to see the LNG Canada project expand to a second phase as soon as possible. LNG Canada is expected to make a final investment decision on Phase 2 of the Kitimat facility soon. British Columbia Premier David Eby said this week that he hoped the decision would come by the end of this year.

Eby described the project as the largest private sector investment in Canadian history. The full project carries a price tag of $40 billion. Construction of the first phase took seven years. The first cargo departed from Kitimat in June 2025. Since then the terminal has been increasing shipments, with the majority directed to South Korea.

The project has redirected a portion of Canadian natural gas exports, which previously flowed almost entirely to the U.S., toward global markets.

Canada is backed by Shell, Petronas, PetroChina, Mitsubishi and Kogas. The facility is located in Kitimat, British Columbia. The provincial government’s current position represents a shift from earlier political sentiment in the region toward hydrocarbon development.

The terminal’s ramp-up follows years of construction and commissioning. Exports have focused on Asian markets, particularly South Korea. A positive final investment decision on Phase 2 would expand export capacity from the site.