Fluor, JGC get limited notice to proceed for LNG Canada expansion

A joint venture of US engineer Fluor and Japan's JGC has received limited notice to proceed for the proposed Phase 2 expansion of the Shell-led LNG Canada project.

Flour and JGV revealed the award in separate statements.

This follows an award by LNG Canada last year to update the front-end engineering and design (FEED) for the proposed Phase 2 expansion.

Fluor and JGC said that LNTP enables them to initiate early planning and move forward with key activities to support a final investment decision by LNG Canada.

Under the LNTP scope with JFJV, LNG Canada will begin long-lead procurement activities, advance detailed design and site preparation, refine execution planning, and increase resource deployment.

JFJV2 is a Canadian joint venture comprised of Fluor Canada (50 percent) and JGC Constructors (No2) BC (50 percent).

The same joint venture partners (JFJV) completed the first phase of Canada’s first large-scale LNG project in Kitimat, British Columbia, in December last year.

The plant is the first of its kind in Canada with an annual production capacity of approximately 14 million tonnes of LNG.

The Phase 2 expansion would double the facility’s production capacity if a final investment decision is achieved.

Image: JGC

Last month, Shell-led LNG Canada reached a deal with the provincial and state governments to work towards a final investment decision on the planned expansion of its Kitimat LNG export facility on the west coast of Canada by the end of this year.

This agreement follows a decision on May 1, 2026, by LNG Canada’s JV participants to approve hundreds of millions of dollars in incremental funding to help finalize critical work scopes to achieve a potential FID by the end of the year.

At 40 percent, Shell has the largest working interest in the LNG Canada JV.

MidOcean Energy, the LNG unit of US-based energy investor EIG, completed its deal to buy a 20 percent interest in Petronas’ entities in Canada, including a stake in the LNG Canada project, in December last year.

Besides Petronas and MidOocean, other partners include PetroChina, Mitsubishi Corporation, and Kogas.

Most Popular

Top 5 news of the week July 6-12

LNG Prime brings you the five most popular news stories on our platform during the week of July 6-12, 2026.

Chevron pens Western Australian gas supply deal with Alinta

Chevron’s Australian unit has signed a new long-term deal with Alinta Energy to deliver domestic natural gas from its Gorgon and Wheatstone LNG projects and the Woodside-led NWS JV.

LNG Canada offers option to First Nations to invest in Phase 2 storage tank

Shell-led LNG Canada has signed an agreement with five northwestern B.C. First Nations, giving them the option to invest up to C$1 billion ($711 million) to acquire an LNG storage tank slated for construction as part of the expansion of its Kitimat LNG export facility on the west coast of Canada.
spot_img

More News Like This

ARC Resources shareholders approve $16.4 billion acquisition by Shell

Canadian gas producer ARC Resources said that its shareholders have approved the previously announced acquisition by UK-based LNG giant Shell, valued at approximately $16.4 billion, including debt.

Shell, Focol take FID on Bahamas LNG terminal

UK-based LNG giant Shell and its partner Freeport Oil Company (Focol) have taken a final investment decision on a small-scale LNG regasification terminal in the Bahamas.

Shell expects ‘significantly higher’ LNG trading results in Q2

UK-based LNG giant Shell expects trading and optimization results for its integrated gas business in the second quarter of this year to be "significantly higher" compared to the previous quarter.

Shell, PV Gas seal LNG supply deal

Petrovietnam Gas, a unit of state-owned Petrovietnam, said it had signed a five-year deal to buy LNG from a unit of UK-based LNG giant Shell.