(World Oil) – LNG Canada has taken another step toward a proposed expansion of its export facility in Kitimat, British Columbia, issuing a limited notice to proceed (LNTP) for Phase 2 of the project.
Fluor Corp. announced that its JGC Fluor BC LNG II joint venture with JGC Corp. has received authorization to begin early planning and execution activities in support of a potential final investment decision on the expansion.
If approved, Phase 2 would double the facility’s liquefied natural gas export capacity. The existing LNG Canada facility, which entered service following completion of Phase 1, has an annual production capacity of approximately 14 million tonnes of LNG.
“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, Business Group President of Energy Solutions at Fluor. “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.”
The same Fluor-JGC joint venture was responsible for delivering Phase 1 of the project, including two LNG processing trains, storage tanks, a marine terminal, rail infrastructure and supporting facilities.
Located on Canada’s west coast, the LNG Canada facility provides access to abundant natural gas supplies and Pacific Basin markets through an ice-free harbor. The project is operated by a joint venture comprising Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.
A final investment decision on Phase 2 has not yet been announced. However, the limited notice to proceed signals continued progress toward a potential expansion that would further strengthen Canada’s position in the global LNG market.
