Fluor and JGC awarded FEED contract for LNG Canada's Phase 2, advancing Canada’s role in global low-carbon energy supply.
Fluor Corporation has announced that its joint venture (JV) with Japan’s JGC Corporation has been awarded the contract to revise the Front-End Engineering and Design (FEED) for the proposed second phase of the LNG Canada project. This facility is located in Kitimat, British Columbia, on the traditional lands of the Haisla Nation. The contract’s financial terms remain confidential, but Fluor confirmed the award was recognized in its financial reporting for the second quarter of 2025.
This milestone comes on the heels of Phase 1’s successful commissioning, marked by the recent export of the project's first liquefied natural gas (LNG) cargo. Since the project's inception in 2018, the JGC Fluor JV has played a key role in executing Phase 1, offering a comprehensive suite of services including engineering, procurement, fabrication management, construction, and commissioning. These efforts were pivotal in constructing the facility and ensuring its safe startup.
Strategically positioned on Canada's west coast, the LNG Canada plant enjoys significant logistical advantages, including proximity to large, low-cost natural gas reserves and year-round access to an ice-free deep-water port. It stands as Canada's first large-scale LNG export facility, with a design capacity of up to 14 million tonnes per annum. Beyond economic significance, the plant contributes to the global energy transition by exporting natural gas—a lower-carbon alternative to coal—thereby helping to reduce greenhouse gas (GHG) emissions globally. The plant operates under a 40-year export license.
Plans for a second phase are currently under consideration. If greenlit, Phase 2 would further expand the plant’s liquefaction, storage, and shipping capacity. While LNG Canada and its consortium of five stakeholders—Shell, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS—continue to evaluate the viability of Phase 2, a final investment decision has yet to be made.
Mike Alexander, President of Fluor’s Energy Solutions Business Group, expressed enthusiasm about the project’s continued evolution. “We are honored to have been a key partner throughout Phase 1 and are eager to support the next phase of this world-class project,” Alexander stated. “The LNG Canada team deserves recognition for its commitment to a sustainable energy future by delivering lower-carbon natural gas to international markets.”
Fluor’s Canadian legacy spans more than 75 years, during which the company has safely executed complex projects across various sectors—including oil and gas, petrochemicals, mining, power, and infrastructure—through its comprehensive engineering, procurement, and construction services.
