LNG Canada Phase II Positive Final Investment Decision : A $33B Yes!

Shannon Joseph, Chair of ESF, attends the news conference today in Vancouver. 

FOR IMMEDIATE RELEASE

Vancouver, BC — 29 September 2026 — Energy for a Secure Future (ESF) welcomes the final investment decision by the LNG Canada joint venture partners to move forward with the Phase 2 expansion of its Kitimat, B.C., export facility. This marks an important milestone in Canada’s ability to attract international investment and build global trade infrastructure.

The decision comes at a critical moment for global energy security. Since 2022, countries in Europe and Asia have called on Canada to supply more LNG globally as these nations sought to diversify their energy supplies away from Russia. These calls have grown louder in 2026 amid the instability and disruptions to energy flows caused by the conflict in the Strait of Hormuz.

“LNG Canada Phase 1 put Canada on the map as a global LNG supplier and demonstrated that we can deliver our energy to countries that need it,” said Shannon Joseph, Chair of Energy for a Secure Future. “Phase 2 allows us to build on that foundation, to get greater access and value for our resources, and to create long-term opportunities for Canadians.”

Phase 2 will double LNG Canada’s production capacity from approximately 14 million tonnes per year to 28 million tonnes, strengthening Canada’s position as a global LNG supplier. The decision represents approximately $33 billion in new private-sector investment in Canada and will create thousands of good paying jobs across local communities and the broader supply chain.

The expansion builds on the local community benefits generated by LNG Canada Phase 1 and the Coastal GasLink pipeline as highlighted in ESF’s recent report, When Our Nation Builds. These impacts include significant boosts to employment and workforce development, business opportunities, government revenues and increased own-source revenues for First Nations in the project corridor between Northeast BC and Kitimat.

“When Canada builds, the benefits are real and lasting,” Joseph said. “They include thousands of workers building skills, steel producers filling orders in Ontario, First Nations with new revenues to build their futures, rural municipalities attracting new families and businesses. Phase 2 means more. And it demonstrates what is possible when we move from discussing Canada’s resource potential to actually building the infrastructure needed to realize it.”

The decision to proceed with Phase 2 also reinforces Canada’s improved position as a destination for investment. The LNG Canada joint partnership brings together major international energy companies who can choose to deploy capital anywhere in the world. They have chosen Canada. 

“The approval of Phase 2 tells us that Canada is becoming more able to compete for capital globally,” Joseph said. “Five international investors have looked at Canada and decided that the conditions are right to invest, and the project can be successfully built. Other investors will be paying attention and will hopefully drive a new cycle of investment in Canadian energy and infrastructure.

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Energy for a Secure Future is a non-partisan civil society initiative that brings together Canadian business, labour, Indigenous and municipal leaders and organizations in a new conversation about energy and building a secure future for Canada and our allies around the world.