Prime Minister Mark Carney welcomed a final investment decision Tuesday on LNG Canada’s Phase 2 expansion in Kitimat, British Columbia, describing the $33-billion private-sector project as a major step in the country’s effort to diversify trade and build large infrastructure more quickly.
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Mark Carney welcomes LNG Canada investment
The expansion will add two liquefied natural gas processing units, known as trains, to the existing Kitimat facility and double LNG Canada’s production capacity from 14 million tonnes per year to 28 million tonnes, according to LNG Canada’s announcement.
The expanded plant is expected to become the second-largest facility of its kind in the world.
The project is located on the traditional territory of the Haisla Nation and is backed by a joint venture involving Shell Canada, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.
Shell holds a 40 per cent interest, while PETRONAS owns 25 per cent, PetroChina and Mitsubishi each hold 15 per cent, and KOGAS holds five per cent.
“The historic investments in LNG Canada are proof that Canada is building big and bold again,” Carney said in remarks released by his office.
He said the project would help Canada strengthen domestic economic capacity while opening additional energy-trade opportunities in Asia.
Thousands of jobs and a larger pipeline system
LNG Canada Phase 2 is expected to create more than 4,000 direct construction jobs.
The federal government also said nearly $5 billion in contracts and procurement has already gone to First Nations and local businesses connected to the project.
The investment decision also triggered a separate decision by TC Energy to proceed with Phase 2 of the Coastal GasLink pipeline.
The 670-kilometre pipeline carries natural gas from Dawson Creek to the LNG Canada facility in Kitimat.
Coastal GasLink Phase 2 will add compressor stations and upgrade existing facilities, nearly doubling the pipeline’s current capacity.
Construction is expected to begin in 2027 and the work is projected to create more than 2,000 jobs.
TC Energy said the expansion will allow more natural gas from Western Canada’s sedimentary basin to reach global markets.
That gives the LNG Canada project a larger supply route while supporting Ottawa’s stated goal of reducing Canada’s reliance on a single export market.
Indigenous equity and regional participation
The project includes an Indigenous equity opportunity involving MNT Investments LP, which represents the Gitga’at, Gitxaała, Haisla, Kitselas and Kitsumkalum Nations.
The agreement provides an option to invest up to $1 billion for a majority ownership stake in LNG Canada’s new Phase 2 storage tank.
The proposed structure would give the participating First Nations a long-term revenue stream linked to infrastructure ownership rather than relying only on construction contracts or short-term economic benefits.
The federal government presented the arrangement as part of a broader effort to include Indigenous communities as long-term partners in major Canadian projects.
LNG Canada has said the facility’s use of electricity in British Columbia will help lower its emissions intensity compared with other large LNG operations.
Government documents describe the project’s expected emissions as lower than those of comparable facilities, although the overall climate and environmental effects will continue to be part of public and regulatory discussion.
Why the decision matters for Canada
The Phase 2 decision is one of the largest private investment announcements made under Carney’s economic agenda.
Ottawa referred the project to the Major Projects Office in September 2025, with the office coordinating federal processes intended to move the proposal toward a final investment decision.
Carney’s government has placed major infrastructure, energy and trade projects at the centre of its response to rising economic uncertainty and continued tensions with the United States.
LNG Canada’s location on the Pacific coast gives Canadian producers direct access to customers in Asia and other overseas markets.
The project also arrives as Canada seeks to expand relationships across the Indo-Pacific.
The federal government says the additional export capacity could improve Canada’s position as a supplier of secure energy while supporting trade links with countries such as Japan, South Korea and other Asian markets.
What happens next
With the final investment decision complete, LNG Canada and its partners are expected to move into the next phase of engineering, procurement and construction planning.
Coastal GasLink’s related expansion will also proceed following the project partners’ approval.
The scale of the undertaking means the project will unfold over several years, with construction schedules, procurement, workforce requirements and Indigenous participation agreements shaping the next stage.
The federal government’s ability to maintain regulatory coordination while meeting environmental and consultation obligations will remain closely watched.
For Carney, the announcement offers a concrete example of his government’s promise to accelerate nation-building projects while presenting Canada as a more diversified energy and investment destination.
Frequently Asked Questions
What did Mark Carney announce about LNG Canada?
Mark Carney welcomed the final investment decision on LNG Canada’s Phase 2 expansion in Kitimat, British Columbia.
How much will LNG Canada Phase 2 cost?
The expansion represents approximately $33 billion in private-sector investment.
How much will LNG Canada’s capacity increase?
The project will double production capacity from 14 million tonnes of LNG per year to 28 million tonnes.
How many jobs could the project create?
The expansion is expected to create more than 4,000 direct construction jobs, while the related Coastal GasLink expansion is expected to create more than 2,000 jobs.
Which Indigenous communities are involved in the project?
An agreement involving the Gitga’at, Gitxaała, Haisla, Kitselas and Kitsumkalum Nations provides an option to invest up to $1 billion in a Phase 2 storage tank.
Fact-Checked: Key project, investment, capacity, employment and Indigenous-participation details were checked against federal, company and infrastructure-partner announcements published on September 29, 2026.
Disclaimer: Project timelines, employment totals and investment figures may change as construction and final engineering work proceed.