LNG Canada launches historic partnership with First Nations

Key Takeaways:

• Five First Nations have secured an option to invest up to $1 billion to buy a majority stake in LNG Canada’s planned Phase 2 storage tank.
• MNT Investments LP will lease the storage asset back to LNG Canada, generating long-term, stable rental yields for the Nations.
• The 225,000 m3 tank is one of the world’s largest, built from cryogenic insulation and a 9% nickel alloy steel inner tank.
• The historic transaction hinges on a Final Investment Decision (FID) for the Phase 2 expansion, which is expected by the end of 2026.

The Whole Story:

In one of the largest Indigenous economic partnerships in Canadian history, LNG Canada and its Joint Venture Participants (JVPs) announced a historic equity option agreement today with MNT Investments LP. Under the landmark agreement, the Indigenous-led limited partnership has the option to invest up to $1 billion to acquire a majority equity ownership stake in the massive liquefied natural gas (LNG) storage tank planned for LNG Canada’s proposed Phase 2 expansion.

“This is far more than a commercial transaction,” said Luugagwelks (Linda Innes), Elected Chief Councillor of the Gitxaała Nation. “It marks a fundamental shift in how development can occur in our traditional territory: one where Indigenous Nations are not expected to accept impacts but instead participate as equity owners and true partners… We are open for business with the right partners and governments, and this agreement shows what is possible when trust is earned.”

MNT Investments LP represents the economic development organizations of five neighboring First Nations: the Gitga’at First Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation, and Kitsumkalum.

The transaction is structured as an infrastructure leaseback. MNT Investments LP would acquire a majority stake in a special purpose entity that will purchase the newly planned storage tank. The asset will then be leased back to LNG Canada for the entire operational lifespan of the terminal, while LNG Canada continues to safely operate and maintain the facility and associated infrastructure.

The agreement is conditional on LNG Canada’s joint venture partners—Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), and Kogas (5%)—issuing a positive Final Investment Decision (FID) for the Phase 2 expansion in Kitimat. The partners are targeting the FID by the end of 2026. If approved, Phase 2 will add two processing “trains,” doubling the export terminal’s total plant capacity up to 30 million tonnes per annum.

The proposed 225,000 $m^3$ expansion tank will mirror LNG Canada’s existing Phase 1 tank, which stands as the largest in Canada at 56 meters tall and 92 meters in diameter. Since commencing commercial operations on June 30, 2025, LNG Canada has already safely loaded and shipped more than 100 LNG cargoes to global markets.

“Our announcement reflects our continued commitment to reconciliation by creating a pathway for Indigenous equity in our proposed Phase 2 expansion,” said Chris Cooper, President and CEO of LNG Canada. “This agreement recognizes that Indigenous Nations should have the opportunity to participate in major investments like Phase 2, not only through jobs, training, procurement and community benefits, but also through long-term ownership and value creation at a global scale.”

The MNT Investments LP Coalition

The $1 billion equity option is held collectively by five First Nations neighboring LNG Canada’s coastal operations:

• Haisla Nation: Host Nation whose traditional territory encompasses the Kitimat terminal site.
• Gitga’at First Nation: Coastal Nation steward of the surrounding marine shipping channels.
• Gitxaała Nation: The oldest established society on the North Coast, managing regional waters.
• Kitselas First Nation: Upper Skeena River territory partner driving regional economic growth.
• Kitsumkalum: Skeena-corridor partner establishing generational infrastructure wealth.