The joint venture will build two additional liquefaction trains and a new LNG storage tank as the Kitimat facility prepares to double its production capacity.
Fluor and JGC Corporation are moving ahead with the second phase of LNG Canada’s major export facility in British Columbia after securing a contract valued at $15 billion combined.
The companies’ joint venture, JGC Fluor BC LNG II, received notice to proceed after LNG Canada reached its final investment decision on the Phase 2 expansion. Fluor said it will recognize $7.5 billion for its share of the contract in the third quarter of fiscal 2026. (Fluor Investor Relations)
The project is located in Kitimat on Canada’s west coast, where the companies previously worked together to deliver the first phase of the LNG facility.
Two new LNG trains planned
Phase 2 will add two liquefaction units, commonly called trains, along with another LNG storage tank.
Once completed, the expansion is expected to double LNG Canada’s production capacity to approximately 28 million tonnes per year. The additional infrastructure will increase the facility’s ability to process, store and ship liquefied natural gas. (Fluor Investor Relations)
Fluor and JGC will handle engineering, procurement, fabrication, construction and commissioning for the expansion.
The companies each hold a 50% interest in the joint venture responsible for executing the work. (Fluor Investor Relations)
Building on Phase 1
The new contract extends a partnership that began with the first phase of LNG Canada.
Fluor and JGC delivered engineering, procurement, fabrication management, construction and commissioning services for Phase 1, which included two processing trains and related infrastructure.
The facility began producing LNG in June 2025, with the project handover completed later that year. (Fluor Investor Relations)
The first phase relied heavily on modular construction. More than 215 large modules were fabricated away from the Kitimat site before being transported to British Columbia for installation. Fluor says the approach was used to support construction at the remote project location. (Fluor)
Work moves into the next phase
The Phase 2 expansion has been in development for several years.
In 2025, the Fluor-JGC joint venture was selected to update the front-end engineering and design for the proposed expansion. In June 2026, the team received a limited notice to proceed, allowing early planning and other preparatory activities to begin while LNG Canada worked toward its final investment decision. (Fluor Investor Relations)
That decision has now cleared the way for the larger construction contract.
Fluor CEO Jim Breuer said the experience gained during Phase 1 will be applied to the next stage of the project.
LNG Canada ownership
LNG Canada is owned by a group of international energy companies.
Shell holds a 40% interest, while PETRONAS owns 25%, PetroChina 15%, Mitsubishi Corporation 15% and Korea Gas Corporation 5%. (Fluor Investor Relations)
The facility is being developed on Canada’s west coast, where its deepwater harbor provides access for LNG carriers.
With Phase 2, the project will expand its processing and export capabilities and increase the amount of LNG that can be produced at the Kitimat site.
Construction of the second phase now moves forward under the same Fluor-JGC partnership that delivered the first stage of the facility.
Note: I kept the $15 billion figure as the combined value because Fluor’s official announcement says its share is $7.5 billion, while the joint venture is split 50/50. (Fluor Investor Relations)
