LNG Canada to move forward with Phase 2 expansion project in Kitimat, B.C.

A flare fires off from the LNG Canada plant in Kitimat, B.C., on April 11, 2025. CBC News has confirmed an announcement from Prime Minister Mark Carney on Tuesday will be about the long-expected final investment decision for Phase 2 of the LNG Canada project on B.C.'s North Coast. (Patrick Doyle/The Canadian Press; Chris Corday/CBC)Social SharingThe multibillion-dollar LNG Canada Phase 2 expansion in Kitimat, B.C., is going forward, Shell Energy Canada says, in a move that could double exports of liquefied natural gas from the northern coastal facility to overseas markets.

In a release early Tuesday, Shell Canada Energy — which holds a 40 per cent interest in the joint venture — confirmed the decision to move forward with Phase 2.

It comes as Prime Minister Mark Carney is in Vancouver on Tuesday to highlight what his office calls a "historic investment in Canada's energy industry."

His public itinerary says the news will be shared at 11 a.m. PT, followed by a 1:20 p.m. PT briefing on "new measures to protect Canada's oceans."

CBC News has confirmed the earlier announcement will be about the long-expected final investment decision for Phase 2 of the LNG Canada project in Kitimat.

The expansion project is expected to roughly double the production of liquefied natural gas from 14 million to 28 million tonnes annually, the companies behind the project say.

The Canadian government says the expansion would make it the second-largest in the world, worth billions to the national economy.

Critics point out ramping up LNG production would also sharply increase the amount of emissions from natural gas production in British Columbia.

Environmentalists argue that reducing emissions carries more urgency in the wake of a federal report warning Canadians to prepare for a future that's 5 C hotter — which will lead to the disappearance of glaciers in western Canada and longer, more intense summer droughts, among other impacts.

Still, the project has been identified as one of national importance under Carney, and has support from both the B.C. NDP and B.C. Conservative Party — who have each pledged to ramp up LNG production should they form government following the Oct. 24 election.

On the campaign trail Monday, B.C. Conservative Leader Lorne Doerkson announced his plan to make B.C. an "energy superpower," promising to cut red tape in order to triple LNG production by 2035.

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In response, the B.C. NDP argued the plan wasn't ambitious enough, and said it already has plans to have B.C. outpace Doerkson's projections.

The B.C. Greens, meanwhile, have called for a moratorium on LNG expansion, citing environmental risks and concerns about Indigenous rights, further saying that fast-tracking projects is eroding oversight and accountability.

LNG is made from natural gas, a fossil fuel often extracted in northeast B.C. and Alberta through a practice called hydraulic fracturing or fracking. 

It involves drilling down into the ground and injecting a mixture of water, sand and chemicals into the ground to force the release of the oil and gas.

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The gas is then shipped via pipeline to terminals, which cool it to about –160 C, at which point it can be shipped overseas for use as a fuel.

LNG is often referred to as "clean" because burning it for fuel causes fewer emissions than coal or oil — but that claim is disputed by some analysts because of the energy and destruction it takes to produce.

One of the known impacts of fracking is an increase in earthquakes, which have been felt with increasing frequency in B.C.'s Peace River region in recent years.

LNG Canada is a joint venture company made up of Shell, Petronas, PetroChina, Mitsubishi Corporation and Korea Gas Corp.

Last year, its Kitimat plant shipped its first cargo load of LNG destined for Asian markets.

Andrew Kurjata is a producer and reporter for CBC News born and based in the city of Prince George, British Columbia, in Lheidli T'enneh territory. You can email him at andrew.kurjata@cbc.ca or text 250.552.2058.