JGC-Fluor Joint Venture Receives Notice to Proceed on LNG Canada Phase 2

The JGC-Fluor joint venture has received Notice to Proceed (NTP) for LNG Canada Phase 2, clearing the way for the engineering, procurement, fabrication, construction and commissioning work required for the major expansion of the Kitimat LNG export facility in British Columbia.

Fluor Corporation announced the award on September 29, 2026, one day after LNG Canada and its joint-venture partners approved the Phase 2 Final Investment Decision (FID).

The project will add two new LNG processing trains and an additional LNG storage tank, increasing LNG Canada's total production capacity from approximately 14 million tonnes per annum (mtpa) to 28 mtpa.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion Following Final Investment Decision

JGC-Fluor Receives Notice to Proceed Following LNG Canada FID

The Notice to Proceed marks the transition from project approval to execution for LNG Canada Phase 2.

LNG Canada's joint-venture participants — Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS — approved the Phase 2 FID on September 28, 2026.

Following that decision, the JGC-Fluor joint venture received the NTP to proceed with the delivery of the expansion.

The joint venture will be responsible for major project execution activities covering engineering, procurement, fabrication, construction and commissioning.

Source: Fluor Corporation — LNG Canada Phase 2 Expansion Following Final Investment Decision

JGC Fluor BC LNG II JV Will Execute Phase 2 Work

The work at the LNG export facility will be carried out by JGC Fluor BC LNG II Joint Venture (JFJV2).

JFJV2 is a Canadian joint venture consisting of:

• Fluor Canada Ltd. — 50%

• JGC Constructors (No2) BC Ltd. — 50%

The partnership builds on the companies' previous involvement in LNG Canada Phase 1.

Fluor and JGC previously worked together to deliver the engineering, procurement, fabrication management, construction and commissioning of the first two LNG processing trains and associated infrastructure.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

Phase 2 Will Double LNG Canada's Production Capacity

The LNG Canada Phase 2 expansion will add two additional liquefaction trains to the existing facility.

Phase 1 consists of two LNG processing trains with a combined production capacity of approximately 14 mtpa.

Once Phase 2 is completed, the facility is expected to have four trains and approximately 28 mtpa of total LNG production capacity.

The expansion will also include an additional LNG storage tank and improvements to processing, storage and shipping infrastructure.

Source: LNG Canada — LNG Canada Announces Phase 2 Final Investment Decision

What Is Included in the LNG Canada Phase 2 Contract?

The JGC-Fluor scope covers several major stages of LNG project execution.

The joint venture will provide:

• Engineering

• Procurement

• Fabrication

• Construction

• Commissioning

• Construction management and project execution activities

• Integration of the new facilities with the existing LNG Canada site

The Phase 2 work will be constructed adjacent to the existing LNG Canada facility in Kitimat.

The expansion is designed to build on infrastructure and experience developed during Phase 1.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

Fluor to Recognize US$7.5 Billion Share of Contract

The Phase 2 award represents a major contract for Fluor.

Fluor said it will recognize its approximately US$7.5 billion share of the multibillion-dollar contract in the third quarter of fiscal 2026.

The figure represents Fluor's share of the overall JGC-Fluor joint venture contract.

The size of the award reflects the scale of the LNG Canada Phase 2 development, which involves multiple LNG trains, storage infrastructure and associated facilities.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

JGC and Fluor Build on Phase 1 Experience

The Phase 2 award follows the successful delivery of LNG Canada Phase 1 by the JGC-Fluor partnership.

During Phase 1, the joint venture provided engineering, procurement, fabrication management, construction and commissioning services.

The work included the project's two LNG processing trains and supporting infrastructure such as:

• LNG storage tanks

• Rail yard

• Water-treatment facilities

• Flare systems

• Marine terminal infrastructure

The LNG Canada facility began producing LNG in June 2025, while handover of the completed facility was completed in October 2025.

The Phase 2 award allows the same project partnership to apply experience gained during the first stage to the expansion.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

Earlier Limited Notice to Proceed Was Issued in June

The September NTP follows an earlier Limited Notice to Proceed (LNTP) issued in June 2026.

On June 1, Fluor announced that JFJV2 had received an LNTP for the proposed Phase 2 expansion.

That limited authorization allowed the joint venture to begin early planning and advance selected activities while LNG Canada and its partners continued working toward the final investment decision.

Following the September FID, the project moved into the next stage with the full Notice to Proceed.

Source: Fluor Corporation — Fluor Joint Venture Receives Limited Notice to Proceed for Proposed Phase 2 Expansion

LNG Canada Phase 2 Strengthens Canadian LNG Exports

The expansion is expected to increase Canada's ability to export LNG to international markets.

LNG Canada is located on Canada's west coast in Kitimat, British Columbia, providing access to Pacific shipping routes and Asian LNG markets.

The Phase 2 expansion will increase total production capacity to approximately 28 mtpa, significantly expanding the volume of Canadian LNG available for international customers.

LNG Canada says Phase 2 will help move Canada toward becoming one of the world's top five LNG-exporting nations.

Source: LNG Canada — LNG Canada Announces Phase 2 Final Investment Decision

LNG Canada Joint Venture Ownership

LNG Canada is owned by five major energy companies.

The current ownership structure is:

Shell is the largest shareholder with a 40% interest.

The ownership structure remains separate from the JGC-Fluor construction joint venture, which is responsible for executing the Phase 2 work at the LNG facility.

Source: LNG Canada — Phase 2 Final Investment Decision; Fluor Corporation — Phase 2 Expansion Following Final Investment Decision

Phase 2 Includes Additional LNG Storage Infrastructure

In addition to the two new liquefaction trains, Phase 2 will include an additional LNG storage tank.

The expansion will also enhance processing, storage and shipping capabilities at the Kitimat facility.

Additional supporting infrastructure will be integrated with the existing LNG Canada operation to accommodate the increased production capacity.

The development of the new storage and processing infrastructure is part of the broader engineering and construction scope being delivered by the JGC-Fluor partnership.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

Coastal GasLink Expansion Supports Phase 2

The LNG facility's expansion also requires additional natural gas transportation capacity.

The Coastal GasLink pipeline, which supplies natural gas to LNG Canada, is planned for expansion as part of the broader Phase 2 development.

The pipeline is approximately 670 kilometres long and connects Western Canadian natural gas supplies with the LNG Canada facility.

The Phase 2 development includes additional compressor infrastructure to support the increased gas requirements associated with the new LNG trains.

Source: Shell — Shell Takes Final Investment Decision to Double LNG Canada Capacity

LNG Canada Phase 1 Provides a Foundation for Phase 2

The JGC-Fluor partnership's previous work on Phase 1 provides a direct connection between the two stages of the project.

Phase 1 established LNG Canada's initial export infrastructure and included two LNG trains.

The facility shipped its first LNG cargo in June 2025.

The Phase 2 expansion will use the existing site's infrastructure and add two more trains, effectively doubling production capacity.

Fluor said the joint venture's successful delivery of Phase 1 provides a foundation for the next stage of the project.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

Kitimat Location Provides Pacific Market Access

The LNG Canada facility is located on Canada's Pacific coast and benefits from an ice-free deepwater harbor.

This location provides direct shipping access to markets across the Pacific, particularly in Asia.

LNG Canada has highlighted the shorter sailing distance between Kitimat and Asian markets compared with LNG shipments from the U.S. Gulf Coast that may require transit through the Panama Canal.

The Phase 2 expansion will therefore increase the volume of Canadian LNG that can be delivered through Pacific trade routes.

Source: LNG Canada — LNG Canada Announces Phase 2 Final Investment Decision

Economic and Employment Impact

The Phase 2 project is expected to create construction and supply-chain activity in British Columbia.

LNG Canada estimates that Phase 2 could support up to 4,000 new construction jobs in Kitimat, while approximately 2,100 jobs could be associated with new compressor stations along the Coastal GasLink system.

Once the expansion is operational, LNG Canada expects additional permanent and contractor positions to be created at the facility.

The project is also expected to generate economic activity for engineering companies, construction contractors, equipment suppliers and other businesses involved in the LNG supply chain.

Source: LNG Canada — LNG Canada Announces Phase 2 Final Investment Decision

What the Notice to Proceed Means for the Project

The Notice to Proceed is an important contractual milestone because it authorizes the JGC-Fluor joint venture to move forward with the execution of the Phase 2 scope following the project's FID.

The project has now moved beyond the investment approval stage toward full-scale execution.

The upcoming work will involve detailed engineering, procurement of equipment and materials, fabrication, construction and eventual commissioning of the additional LNG facilities.

The timing and sequencing of individual construction activities will depend on project execution requirements and coordination among LNG Canada, JGC-Fluor, suppliers, contractors and other stakeholders.

Source: Fluor Corporation — Fluor Joint Venture Selected for LNG Canada Phase 2 Expansion

What Comes Next for JGC-Fluor and LNG Canada?

With the Notice to Proceed now issued, JGC-Fluor can advance the engineering, procurement, fabrication and construction activities required for the Phase 2 expansion.

The project will add two new liquefaction trains and an additional LNG storage tank while expanding the site's processing, storage and shipping capabilities.

The expansion will ultimately increase LNG Canada's capacity from approximately 14 mtpa to 28 mtpa.

For JGC and Fluor, the project extends a partnership that successfully delivered LNG Canada Phase 1. For LNG Canada and its shareholders, the NTP marks the next execution stage following the September 2026 FID.

The Phase 2 development is therefore set to become a major addition to Canada's LNG export infrastructure, with the expanded Kitimat facility expected to provide additional Canadian LNG supply to global markets once the new facilities enter operation.