Brian Zinchuk is editor and owner of Pipeline Online
Wudang, a liquefied natural gas (LNG) tanker, fills up at an LNG Canada facility, in an aerial view, in Kitimat, B.C., on Thursday, November 13, 2025. THE CANADIAN PRESS/Ethan Cairns
Editor’s note: In Pipeline Online’s continuing efforts to let people know exactly what our federal government is saying about energy policy, here’s a May 14 statement on LNG Canada’s Phase 2, verbatim:
Enhanced Investment Co-operation Advances Efforts Around LNG Canada’s Proposed Phase 2 Expansion
Vancouver, British Columbia, May 14, 2026 — Today, the Government of Canada, the Government of British Columbia and LNG Canada reached agreement on enhanced investment co-operation and actions to collectively progress closure of final items to support a potential 2026 Final Investment Decision (FID) of LNG Canada’s proposed Phase 2 expansion, a key national and provincial priority project, which was referred by the Prime Minister to the Major Projects Office in September 2025.
This agreement follows a decision on May 1, 2026, by LNG Canada’s Joint Venture Participants (JVPs) to approve hundreds of millions of dollars in incremental funding to help finalize critical work scopes to achieve a potential FID by the end of the year.
Subject to appropriate progress, the funds would be deployed in further engineering, potential long lead item placement, progressing agreements with First Nations, finalization of commercial items across pipeline and supply chain as well as progressing construction work at LNG Canada’s marine offloading terminal. Any potential FID remains subject to the Joint Venture Partners independently satisfying all commercial, fiscal, regulatory and governance requirements.
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The co-operation agreement is anchored in four mutual objectives to:
- Work collaboratively with First Nations in LNG Canada’s proposed Phase 2 expansion;
- Build on Canada’s competitiveness and investment climate — locally, provincially and nationally;
- Ensure jobs and training opportunities; and
- Further diversify export markets and grow the secure supply of responsibly produced Canadian LNG to our allies — at scale — at a critical time, as Canada looks to build strong and solidify a stronger international trade network.
A Phase 2 investment could position Canada as a top-five global LNG exporting nation, supporting Canada’s energy superpower ambitions. Leveraging Canada’s sustainable advantage and price competitiveness, emissions for Phase 2 are projected to be 35 percent lower than those for the world’s best-performing LNG facilities and 60 percent lower than the global average. This project could also create thousands of good-paying jobs during construction and deliver the prosperity needed to support strong public services British Columbians, and all Canadians, rely on.
“Last summer, LNG Canada Phase 1 solidified a new era of Canadian energy leadership by shipping our very first LNG to global customers. Following Phase 2’s referral to the federal Major Projects Office, and together with British Columbia, LNG Canada and First Nations leaders, we are aiming even higher — and that ambition is delivering. Today’s announcement is an exciting milestone in our plan to build a Canada that is strong, prosperous and sovereign, and our government is proud to play a role.”
The Honourable Tim Hodgson, Minister of Energy and Natural Resources
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“Today’s announcement demonstrates the progress we are making to advance critical projects like the proposed LNG Canada Phase 2 expansion and the Government of Canada’s commitment to moving forward faster and in a more co-ordinated way. With the co-ordinated efforts outlined in this agreement, we are helping unlock economic opportunities, creating good jobs for Canadians, strengthening our trade connections with global allies and moving one step closer to positioning Canada as a leading exporter of clean, responsibly produced energy. This is a real example of how collaboration can help position Canada for a more sustainable and prosperous future.”
The Honourable Dominic LeBlanc, President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy
“Today’s announcement is another major step toward a stronger and more independent future for this country we love. LNG Canada Phase 2 would mean more work for skilled trades, more opportunities for local businesses, more revenue for public services and bigger paycheques supporting families across British Columbia. At a time of global uncertainty, B.C. and Canada are showing the world that we are a reliable partner with the resources, people and ports to help meet growing energy demand — while creating prosperity here at home.”
Premier David Eby, British Columbia
“This enhanced co-operation brings LNG Canada, its Joint Venture Participants and the Governments of British Columbia and Canada even closer together as we work toward a potential final investment decision. Now is the moment for purposeful collaboration to satisfy all the requirements necessary for a positive FID and seize a generational opportunity that could materially increase the scale of reliable, responsibly produced made-in-B.C. LNG for decades to come.”
Chris Cooper, President and CEO, LNG Canada
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