Expansion will double the B.C. facility’s LNG capacity and generate up to 4,000 construction jobs in Kitimat, with another 2,100 tied to Coastal GasLink expansion work.
LNG Canada has given the green light to Phase 2 of its liquefied natural gas development in Kitimat, B.C., setting the stage for another major construction program at one of Canada’s largest private-sector infrastructure projects.
The project’s joint-venture partners – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – have reached a final investment decision on the expansion, which will add two LNG processing trains to the existing facility and will double LNG Canada’s production capacity from 14 million to 28 million tonnes per year.
Construction will also include an additional LNG storage tank, condensate tank and loading berth, along with expanded process and utility systems. And LNG Canada has entered commercial agreements to act as execution manager on a related expansion of the 670-km Coastal GasLink pipeline, which will require construction of five new compressor stations.
At peak, Phase 2 is expected to create up to 4,000 construction jobs in Kitimat. And an approximately 2,100 additional jobs are expected to be required for the compressor-station work.
“LNG Canada Phase 2 is another nation-building investment that demonstrates Canada can build big things when governments, First Nations partners, local communities, skilled trades, contractors and investors work together with shared purpose,” said LNG Canada President and CEO Chris Cooper.
Phase 2 builds on infrastructure established during construction of the first phase, which more than 50,000 Canadians contributed to the delivery of, while construction of Coastal GasLink employed more than 25,000 people.
The expansion also includes a potential Indigenous ownership component with five First Nations neighbouring the facility having an option to invest up to $1 billion in an entity that will purchase the future LNG storage tank being constructed as part of Phase 2.