A Fluor-JGC joint venture has secured a $15 billion engineering, procurement and construction contract on the Phase 2 expansion of LNG Canada, Construction Dive reported.

Fluor Corporation and Japan's JGC Corporation will execute the second-phase EPC package through their existing joint venture — the same consortium that delivered Phase 1 at the Kitimat, British Columbia facility. The contract value places Phase 2 among the larger LNG construction awards of the past five years.

What is LNG Canada?

LNG Canada operates Canada's first large-scale LNG export terminal, located on the northern coast of British Columbia at Kitimat. The facility ships Canadian natural gas sourced primarily from the Western Canadian Sedimentary Basin and the Montney shale play. Phase 1 consists of two processing trains with combined nameplate capacity of approximately 14 million tonnes per annum; first commercial cargo lifted in 2024.

The project is operated by LNG Canada, a joint venture of Shell plc (40%), Petronas (25%), PetroChina (15%), CNOOC (15%) and Mitsubishi Corporation (5%). Shell is project lead; Petronas serves as the LNG offtake partner of record.

Where does Phase 2 fit?

A second phase, contemplated since the 2018 sanction of Phase 1, would add roughly 14 mtpa of liquefaction capacity — a third and potentially fourth processing train alongside the existing two. Phase 2 has progressed through engineering evaluation work without a final investment decision on record through mid-decade.

The $15 billion EPC figure signals a transition from appraisal to execution: sanction-stage work, not study-stage budgeting. Phase 1's original construction package sat in a comparable cost band when executed under the JGC-Fluor JV from 2018 onward.

What remains undisclosed

Construction Dive's report did not attach a direct statement from Fluor, JGC, or the LNG Canada operator. Several commercial questions stay open:

• Scope split between the two JV partners and major subcontractor awards
• Engineering kickoff and first module delivery dates
• Final investment decision timing at the operator level
• Whether Phase 2 capacity will sit at 14 mtpa (one train) or scale to 28 mtpa (two trains)

LNG Canada's operator has not, in publicly available communications through mid-decade, set a fixed FID date for Phase 2. The $15 billion EPC number, however, is consistent with sponsor confidence on commercial terms.

Why this matters

A $15 billion EPC contract typically requires sponsor alignment on project economics, partner equity contributions and a credible execution schedule. For LNG Canada, where Shell and partners spent roughly a decade bringing the existing two trains online, that confidence signals real momentum on the expansion case.

The award also hands Fluor and JGC a follow-on bookend to Phase 1. The same joint venture handed over Kitimat's first module in 2019 and reached commercial LNG export in 2024, establishing an operational track record at the site.

Watch item: a formal LNG Canada statement on Phase 2 final investment decision, expected to clarify partner offtake commitments, equity contributions and the commercial start-up date for additional trains at Kitimat.