LNG Canada is moving forward on a Phase 2 expansion project at its liquefied natural gas export terminal in Kitimat, B.C. The facility is being developed in full partnership with Indigenous Peoples through a $33-billion private sector investment that will make it the second-largest facility of its kind in the world.
Located on the traditional territory of the Haisla Nation, Kitimat has access to abundant, low-cost Canadian natural gas and an ice-free harbour – connecting low-carbon Canadian energy to global markets and providing a secure supply of liquefied natural gas to partners in Asia and Europe.
“LNG Canada’s decision to move forward with Phase 2 is a massive vote of confidence in Canada – and proof that not only does Canada have what the world wants, but we can get big projects built to deliver,” said Minister of Energy and Natural Resources Tim Hodgson. “At a time when our country must build a stronger economy that allows us to be an energy superpower for the long term, this is exactly the kind of investment Canada needs: catalysing private capital, diversifying trade, strengthening global energy security, fostering Indigenous partnership, and turning our world-class resources into lasting prosperity.”
The Phase 2 expansion creates new opportunities for Indigenous ownership through an agreement with MNT Investments LP, representing the Gitga’at, Gitxaała, Haisla, Kitselas and Kitsumkalum Nations. The agreement gives the five First Nations the option to invest up to $1 billion to become majority owners of the facility’s new 225,000-cubic-metre LNG storage tank. The deal would provide long-term revenue for the communities and give the First Nations a larger role in owning and benefiting from the project.
To date, the project has awarded nearly $5 billion in contracts and procurement to First Nations and local businesses across the region. Additionally, leveraging Canada’s clean electricity advantage, greenhouse gas emissions from LNG Canada’s Kitimat operation are expected to be lower than those of any facility of a similar size operating in the world today.
