Fluor joint venture wins LNG Canada phase 2 planning work

Key Takeaways:

• Fluor Corp. and JGC Corp. have been awarded a contract to update engineering and design for a potential Phase 2 expansion of the LNG Canada terminal in Kitimat, B.C.
• LNG Canada, backed by major global energy companies, is Canada’s first large-scale LNG export facility with a capacity of up to 14 million tonnes annually; Phase 2 would further boost processing, storage and shipping.
• A final investment decision on Phase 2 has not yet been made, despite the recent completion and first shipment from Phase 1.

The Whole Story:

Fluor Corp. says its joint venture with Japan’s JGC Corp. has been awarded a contract to update the front-end engineering and design for a proposed second phase of the LNG Canada export terminal in Kitimat, B.C.

The U.S.-based engineering firm did not disclose the value of the deal, which it recorded in the second quarter of 2025. The award comes shortly after the first LNG shipment left the facility, marking the completion of Phase 1. The JGC-Fluor partnership has worked on the project since 2018, handling engineering, procurement, construction and commissioning for the initial build.

Located on the traditional territory of the Haisla Nation on B.C.’s north coast, LNG Canada is the country’s first major liquefied natural gas export facility. The plant has an annual capacity of up to 14 million tonnes and access to abundant, low-cost natural gas from northeast B.C., as well as an ice-free deepwater port. Backed by a 40-year export licence, the facility aims to supply Asian markets with LNG as a lower-carbon alternative to coal, potentially reducing global greenhouse gas emissions.

The project is a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corp., and Korea Gas Corp. (KOGAS).

The first phase involved the construction of two LNG processing units (“trains”). This initial stage also included a new marine terminal, storage tanks, and the Coastal GasLink pipeline, which transports natural gas from northeastern B.C. to the facility

Phase 2, if approved, aims to double the plant’s capacity by adding two more LNG trains, as well as expanding related storage and shipping infrastructure. Future expansion is contingent upon environmental assessments, market demand, and investment decisions.

“We’ve been a proud partner of LNG Canada through Phase 1 and we look forward to contributing to the next chapter in the construction of this world-class facility,” said Mike Alexander, Fluor’s president of energy solutions, in a statement.

Fluor has operated in Canada for more than 75 years, working on large-scale oil, gas, mining, power and infrastructure projects.