Energy, Oil & Gas

Fluor-JGC JV secures $7.5bn share of LNG Canada phase 2 contract

0/0

Fluor Corporation announced that its joint venture with JGC Corporation has been selected to deliver engineering, procurement, fabrication, construction and commissioning for Phase 2 of LNG Canada’s liquefied natural gas (LNG) export facility in Kitimat, British Columbia.

The joint venture received Notice to Proceed (NTP) following LNG Canada’s final investment decision (FID).

Fluor will recognise its $7.5 billion share of the multibillion-dollar contract in the third quarter of fiscal 2026.

The Phase 2 award builds on the joint venture’s delivery of Phase 1 and its established track record on the project.

“LNG Canada Phase 1 was a landmark achievement for Fluor, and we are excited to carry that momentum into the next chapter,” said Jim Breuer, Chief Executive Officer of Fluor. “The decision to proceed with Phase 2 reflects confidence in Canada’s ability to responsibly develop its natural gas resources and connect them with global markets. Our teams will apply the experience and lessons learned from Phase 1 to deliver a successful project.”

Phase 2 will add an LNG storage tank and two liquefaction units, or trains, doubling the facility’s production capacity to approximately 28 million tonnes per annum.

The expansion is expected to increase the site’s processing, storage and shipping capabilities as global demand for LNG grows.

“Reaching FID is an important milestone for LNG Canada and Fluor,” said Pierre Bechelany, Fluor’s Business Group President of Energy Solutions. “Our long-standing relationship and successful delivery of Phase 1 provides a strong foundation for the work ahead. As construction progresses, our focus will remain on safety, quality and collaboration with our partners, First Nations and local communities.”

The joint venture delivered Phase 1, including engineering, procurement, fabrication management, construction and commissioning of two processing trains and associated infrastructure.

The facility began LNG production in June 2025, with handover completed in October 2025.

Located on Canada’s west coast, the LNG Canada facility has access to natural gas resources and an ice-free deepwater harbour.

The Phase 2 expansion is expected to strengthen the facility’s contribution to global energy supply and Canada’s position as an LNG exporter.

LNG Canada is owned by Shell (40 per cent), PETRONAS (25 per cent), PetroChina (15 per cent), Mitsubishi Corporation (15 per cent) and KOGAS (5 per cent).

Phase 2 work will be executed by JGC Fluor BC LNG II JV, equally owned by Fluor Canada and JGC Constructors (No2). -OGN/TradeArabia News Service