LNG Canada operates BC’s largest liquified natural gas (LNG) export facility in Kitimat, on BC’s northwestern coast. The company announced its final investment decision to proceed with construction of Phase 1 in October 2018, and the first LNG was shipped in June 2025. It claims to be the largest private sector investment in Canadian history. A decision on whether to proceed with Phase 2 is expected in 2025.

Partners

LNG Canada is a joint venture between Shell (40 percent), PETRONAS (25 percent), PetroChina (15 percent), Mitsubishi Canada (15 percent) and Korean Gas Corporation (5 percent), all of whom have other interests in LNG:

• PETRONAS owns significant resources in the North Montney area of BC, which provides the gas that feeds LNG Canada’s facility.
• PetroChina has three LNG import facilities in China.
• Mitsubishi has interests in LNG representing around 20 percent of Japan’s LNG demand.
• Korean Gas Corporation (KOGAS) operates four LNG import terminals and a nationwide pipeline network in Korea.

Production

Phase 1 consists of two trains with the capacity to produce 6.5 million tonnes of LNG per year, or 13 million tonnes per year in total. There is storage of 225,000 cubic metres of LNG.

According to the company’s website, the facility has a 40-year export licence to export up to 14 million tonnes of LNG per year initially.

Adding a further two trains in Phase 2 would bring total estimated production capacity of 26 million tonnes of LNG per year. A BC government announcement also claimed the project would produce 26 million tonnes of LNG per year at full build-out.

Natural gas is delivered to the LNG Canada facility via the Coast GasLink pipeline. This $4 billion pipeline from the Montney gas fields northeastern BC was built by TransCanada Corporation, and will also supply gas to Cedar LNG. Each of the joint venture partners is responsible for providing their own share of the gas to the facility.

Regulatory approvals

LNG Canada applied for its Environmental Assessment Certificate from the BC Environmental Assessment Office (EAO) in November 2014, and received the certificate in June 2015. The report from the EAO states LNG Canada will operate for at least 25 years.

LNG Canada announced it had received federal government approval in July 2016 from the Canadian Environmental Assessment Agency. The approval is for a four-train facility, i.e. Phases 1 and 2.

LNG Canada received its permit from the BC Oil and Gas Commission (now the BC Energy Regulator) in December 2015.

LNG Canada announced its final investment decision in October 2018 for a two-train facility, to be operational “before the middle of the next decade.” The first cargo was loaded in June 2025. The BC government announcement on the same day claimed the project was a $40 billion investment, which would generate $23 billion in public revenue over 40 years and create 10,000 jobs in construction and 950 permanent jobs.

Cost

According to a 2024 BC government document, LNG Canada Phase 1 is estimated to cost $20 billion.

A June 2015 announcement by the BC government had claimed the project would cost between $23 billion and $36 billion, but this may include the cost of the Coastal GasLink pipeline. A further BC government announcement in March 2019 claimed LNG Canada’s investment would be $40 billion.

Tax credits

The BC government also announced in March 2019 a “fiscal framework” that included a natural gas tax credit for LNG development in the province, specifically to encourage LNG Canada to proceed with its facility. The tax credit was expected to reduce BC’s corporate tax rate from 12 percent to 9 percent. The Narwhal reports that the total cost of the provincial incentives to LNG Canada, including an exemption from provincial sales tax during construction, would be $5.35 billion.

Sales

Each of the joint venture participants is responsible for marketing its own share of the LNG.

Energy use

Both phases of LNG Canada are approved to use gas to fuel their liquefaction trains, although LNG Canada uses electricity from BC Hydro for “auxiliary power requirements.” According to the Vancouver Sun, Phase 1 currently uses electricity for 20 percent of its energy demand, around 2,000 GWh per year.

According to the Narwhal, Phase 2 would require 585 MW of electricity (no estimate on annual energy requirements).

In the BC Legislature on October 30, 2025, the energy minister stated that “LNG Canada 2” would not be using electricity for its liquefaction process.

Emissions

According to a BC government document, Phase 1 carbon emissions will be 2.1 mega tonnes of CO2 equivalent, or 0.15 tonnes of CO2 / tonne of LNG.