Fluor and JGC each book $7.5B on LNG Canada phase 2 expansion

Fluor and JGC will each book $7.5 billion for their shares of the phase 2 expansion of LNG Canada's liquified natural gas export facility in Kitimat, British Columbia. The Irving, Texas-based Fluor announced the contract in a Tuesday news release and said it will record its share in the third quarter of fiscal 2026.

JV partner JGC, based in Yokohama, Japan, separately valued its own share of the contract at $7.5 billion in a Tuesday announcement. Each firm holds a 50% stake in the JV execution of the expansion, according to Fluor. The Canadian government estimates the second phase will cost about $23 billion in total, reports Briefs Finance.

The joint venture will deliver engineering, procurement, fabrication, construction and commissioning for the expansion. The scope adds two liquefaction units, known as trains, and one additional LNG storage tank, according to Fluor. Once complete, the work will double the facility's production capacity to about 28 million tonnes per annum.

"LNG Canada Phase 1 was a landmark achievement for Fluor, and we are excited to carry that momentum into the next chapter," said Fluor CEO Jim Breuer in the release. "The decision to proceed with Phase 2 reflects confidence in Canada's ability to responsibly develop its natural gas resources and connect them with global markets."

The award extends a working relationship that produced the facility's first phase. Fluor and JGC delivered engineering, procurement, fabrication and construction on phase 1, which began LNG production in June 2025. The contractors completed the handover of the facility in October 2025, according to Fluor.

That first build relied heavily on modular construction. The team fabricated 215 modules overseas before shipping them to Kitimat. The final module arrived from China in July 2023, according to Fluor.

LNG Canada is a joint venture of Shell, Petronas, PetroChina, Mitsubishi Corp. and Korea Gas Corp. Shell said in a Tuesday news release that it expects commercial operations at the expanded facility to begin in the early 2030s, setting a decade-long horizon for one of the largest energy construction programs in North America.