DECISION BY YEAR’S END – LNG Canada to Make Decision on Phase 2 Expansion by End of Year, Resource Minister Hodgson Says

 

(Reuters) – The proponents behind LNG Canada will make a final investment decision on whether to ​go ahead with a proposed second phase expansion ‌of the project by the end of this year, Canada’s Natural Resources Minister said Thursday.

• The Canadian government is working together with ​British Columbia and the Shell-led LNG Canada to ​collectively progress the final items needed to support ⁠a decision, Minister Tim Hodgson said.
• Shell and its project ​partners on May 1 approved hundreds of millions of dollars (CDN) ​in incremental funding to help finalize critical work needed to get to a final investment decision, Hodgson said.
• The work that needs ​to be done includes further engineering, progressing agreements with ​First Nations, supply chain and procurement, as well as progressing construction work ‌at ⁠LNG Canada’s marine offloading terminal, said LNG Canada CEO Chris Cooper.
• LNG Canada began operations in Kitimat, B.C. in June 2025. It has a capacity of 14 million ​metric tons per ​year when ⁠fully ramped up, and its proposed expansion would double that.
• Cooper also addressed on Friday ​the facility’s gas flaring volumes, which exceeded the ​regulatory ⁠limit in multiple months last fall and winter. He said high flare volumes are normal for LNG facilities in ⁠a ​startup phase, and the volumes of ​gas being released into the atmosphere should decline as LNG Canada reaches ​a steady state of operations.

Government of Canada Press Release Here

Reporting by Amanda Stephenson in Calgary

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