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Fluor Joint Venture Receives Limited Notice to Proceed for Proposed Phase 2 Expansion of LNG Canada Facility

This article was originally posted on Whitepapers and Case Studies: Zweig List.
Summary
Fluor said its JGC Fluor BC LNG II joint venture with JGC Corporation received a limited notice to proceed for the proposed Phase 2 expansion of the LNG Canada export facility in Kitimat, BC, enabling early planning ahead of a potential final investment decision. The same JV delivered Phase 1 in 2025, including two liquefaction trains and supporting infrastructure. LNG Canada currently produces about 14 million tonnes per year under a 40-year license; Phase 2 would double capacity if sanctioned. The project is owned by Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi (15%) and KOGAS (5); JFJV2 is a 50/50 venture between Fluor Canada Ltd and JGC Constructors (No2) BC Ltd.

What do you think will most influence a Phase 2 FID—global LNG demand and pricing, project cost/execution risks, or environmental and policy considerations?

Fluor Corporation (NYSE: FLR) announced today that its JGC Fluor BC LNG II joint venture with JGC Corporation (JFJV2) has received limited notice to proceed (LNTP) for the proposed Phase 2 expansion of the LNG Canada export facility in Kitimat, British Columbia, Canada. 

IRVING, Texas —The same joint venture partners (JFJV) played a central role in delivering Phase 1 of LNG Canada, providing engineering, procurement, fabrication management, construction and commissioning services. In 2025, JFJV successfully delivered the project’s two processing units, known as trains, and supporting infrastructure including storage tanks, rail yard, water treatment facility, flare stacks and marine terminal.

“Our long‑standing partnership with LNG Canada is a point of pride for us, and we look forward to advancing the next phase of this world‑class project to help connect Canadian natural gas to global markets,” said Pierre Bechelany, Fluor’s Business Group President of Energy Solutions. “The LNTP enables us to initiate early planning and move forward with key activities to support a proposed Phase 2 final investment decision by LNG Canada.”

Located on Canada’s west coast, the LNG Canada facility benefits from access to abundant, low-cost natural gas and an ice-free harbor. The plant is the first-of-its-kind in Canada with an annual production capacity of approximately 14 million tonnes of liquified natural gas (LNG). It positions Canada as a major supplier of lower-carbon natural gas to global markets and will operate under a 40-year license. The Phase 2 expansion would double the facility’s production capacity if a final investment decision is achieved.

LNG Canada is a joint venture comprised of Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%) and KOGAS (5%).

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


About Fluor Corporation 

Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s nearly 23,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $15.5 billion in 2025 and is ranked 257 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement, construction and maintenance services for more than a century. For more information, please visit www.fluor.com or follow Fluor on FacebookInstagramLinkedInX and YouTube.

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pat
Jun 14 at 7:00 AM
Curious if Phase 2 sticks with gas‑turbine drivers or shifts to e‑drives if BC Hydro can actually deliver the megawatts. Also, does the LNTP cover locking in the MCHEs and compressor strings now (24 - 36 month lead) and firming tie‑in windows so Trains 1/2 uptime isn’t hammered?
MikeHarlan
Jun 16 at 5:00 AM
From an ops standpoint, the long‑lead gates on LNG I’ve seen are refrigeration compressor trains, coil‑wound heat exchangers, and large‑bore cryogenic valves, where securing vendor slots early can save months. Does this LNTP scope lock those in and incorporate more offsite pre‑commissioning than Phase 1 to tighten turnover and start‑up timelines?
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