LNG Canada Moves Closer to Doubling Capacity Ahead of Phase 2 FID
LNG Canada has authorized early work on a proposed expansion that could significantly increase export capacity, marking another step forward for one of North America's largest LNG projects.
(P&GJ) — LNG Canada has authorized early engineering and procurement activities for its proposed Phase 2 expansion in Kitimat, British Columbia, a step that advances planning for a project that could double the facility's LNG export capacity.
The project owner issued a limited notice to proceed (LNTP) to the JGC Fluor BC LNG II joint venture, allowing the contractor team to begin selected pre-construction activities while LNG Canada continues evaluating a final investment decision on the expansion.
The same Fluor-JGC partnership delivered Phase 1 of the export facility, which entered service with two liquefaction trains and supporting infrastructure, including storage tanks, a marine terminal, rail facilities and water treatment systems.
If sanctioned, the Phase 2 expansion would add additional liquefaction capacity and increase production at the Kitimat facility beyond its current approximately 14 million tonnes per year (mtpa) capacity. LNG Canada has not yet announced a final investment decision.
"The limited notice to proceed allows early planning and key activities to move forward in support of a potential Phase 2 final investment decision," Pierre Bechelany, Fluor's president of Energy Solutions, said in a statement.
Located on Canada's Pacific Coast, LNG Canada is supplied by Western Canadian natural gas and provides direct access to Asian LNG markets. The facility is owned by a consortium consisting of Shell, PETRONAS, PetroChina, Mitsubishi Corp. and Korea Gas Corp. (KOGAS).
The Phase 2 proposal is one of several LNG expansion opportunities under consideration in Canada as producers seek to increase export capacity and serve growing global demand for liquefied natural gas.