Fluor joint venture receives contract for LNG Canada Phase 2 expansion

Fluor Corporation announced on Oct. 12, 2026, that its joint venture with Japan's JGC Corporation received a Notice to Proceed for Phase 2 of LNG Canada's export facility in Kitimat, British Columbia. Fluor will recognize its US$7.5 billion share of the contract in the third quarter of fiscal 2026.

The joint venture received the notice following LNG Canada's final investment decision on the expansion, according to Storage Terminals Magazine. The scope of work includes engineering, procurement, fabrication, construction, and commissioning services for the facility.

The Phase 2 expansion involves constructing an additional LNG storage tank and two new liquefaction trains. Once completed, the new infrastructure will double the export facility's production capacity to approximately 28 million tonnes per annum.

Phase 1 delivery and site details

The contract builds on the joint venture's delivery of Phase 1, which included two LNG processing trains and associated infrastructure. The export facility began producing natural gas in June 2025, and final handover took place in October 2025.

The project will be built adjacent to the existing terminal on Canada's west coast. The Kitimat site provides direct access to natural gas supplies and features an ice-free deepwater harbour designed to support shipping to international markets.

Fluor Chief Executive Officer Jim Breuer said the joint venture will use its experience from Phase 1 to execute the expansion, according to the report. Pierre Bechelany, Fluor's business group president of Energy Solutions, stated that collaboration with project partners, First Nations, and local communities remains a priority during construction.

Joint venture structure and ownership

Work on Phase 2 will be handled by JGC Fluor BC LNG II JV. The Canadian joint venture is owned equally by Fluor Canada Ltd. and JGC Constructors (No. 2) BC Ltd., with each holding a 50 percent interest.

LNG Canada is a joint venture composed of five global energy firms. Shell holds a 40 percent interest in the consortium, PETRONAS holds 25 percent, PetroChina and Mitsubishi Corporation each hold 15 percent, and Korea Gas Corporation holds the remaining 5 percent.