JGC Fluor BC LNG II JV, the 50:50 Canadian venture between Fluor and JGC, has received notice to proceed (NTP) on LNG Canada's phase two expansion after the project partners sanctioned the programme at final investment decision (FID).

The joint venture will execute engineering, procurement, fabrication, construction and commissioning for phase two of the LNG Canada export facility at Kitimat, British Columbia. Fluor will recognise its $7.5bn share of the multibillion-dollar contract in the third quarter of fiscal year 2026.

The award follows the JV's delivery of phase one at the same site. The original facility produced first LNG in June 2025, with handover completed that October.

Phase two adds two liquefaction trains and a third LNG storage tank, doubling nameplate capacity from 14 million tonnes per annum (mtpa) to 28 mtpa. The partners frame the expansion as a response to processing, storage and shipping needs amid continued demand for LNG.

LNG Canada is held by Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi (15%) and KOGAS (5%).

"LNG Canada Phase 1 was a landmark achievement for Fluor, and we are excited to carry that momentum into the next chapter," Fluor CEO Jim Breuer said. "The decision to proceed with Phase 2 reflects confidence in Canada's ability to responsibly develop its natural gas resources and connect them with global markets. Our teams will apply the experience and lessons learned from Phase 1 to deliver a successful project."

The terminal sits on Canada's west coast with access to a deep-water, ice-free harbour and significant Montney-fed natural gas supply.

Upstream and midstream follow-through

The FID has triggered commitments along the value chain. EIG's MidOcean Energy confirmed its participation in the expansion through its Petronas partnership. In December 2025, MidOcean acquired 20% interests in the North Montney Upstream JV and North Montney LNG — vehicles holding Petronas' Canadian upstream investment and its 25% LNG Canada stake, respectively. The expansion is expected to lift MidOcean's associated LNG volumes from 700,000 tpy to 1.4 mtpa.

TC Energy confirmed that Coastal GasLink (CGL) phase two will proceed on the back of the LNG Canada decision. The existing 670 km pipeline moves roughly 2.1 billion cubic feet per day from Dawson Creek to Kitimat; the expansion will nearly double throughput via compressor stations and upgrades along the route.

Under an integrated commercial model, LNG Canada will manage phase two project construction, while TC Energy's CGL retains ownership, operational and permitting responsibilities. CGL and TC Energy will supply technical advisory and procurement services alongside operational expertise.

The watch item: execution timing on the two new trains and the Coastal GasLink compression build-out, against a contracted Fluor revenue profile that lands in Q3 FY2026.