LNG Canada Phase 2 FID a "Massive Vote of Confidence" in Our Economic Future

This is the kind of news that all Canadians should be celebrating.

LNG Canada’s partners have made a final investment decision (FID) on Phase 2 of the Kitimat export facility in B.C., located in the traditional territory of the Haisla Nation ^[1]. It marks a major step forward not just for one project, but for Canada’s place in the global energy economy.

LNG Canada Phase 2 will add two more processing trains, doubling its export capacity from 14 to 28 million tonnes per annum (mtpa). The expansion will make LNG Canada the second-largest facility of its kind in the world ^[2], with commercial operations expected to begin in the early 2030s.

Furthermore, the positive FID sends an important message: Canada can still build major energy and infrastructure projects, and that we’re open for business.

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For years, Canadians have watched major projects get delayed, politicized, or cancelled outright. So, when a project of this scale – the second-largest private sector investment in Canadian history, at $33 billion – moves ahead, backed by global investors and Indigenous partners, it matters. It shows the world that Canada still has what it takes to attract capital, create jobs, and deliver the energy our allies are asking for.

As Energy and Natural Resources Minister Tim Hodgson put it, LNG Canada’s decision is a “massive vote of confidence in Canada.” ^[3]

He’s right, and this is a momentum we should all get behind. After all, LNG export facilities are among the most economically "impactful" projects Canada can do.

A Big Win for Canadian Workers

LNG Canada Phase 2 isn’t just about exporting natural gas. It’s about the economic opportunities it will bring here at home.

At peak construction, LNG Canada Phase 2 is expected to support up to 4,000 new construction jobs in Kitimat ^[3]. More than 50,000 Canadians helped build Phase 1, and once Phase 2 is complete, it is expected to add about 90 full-time jobs and 150 contractor roles in the region ^[3].

That's real work for real people. It means paycheques, apprenticeships, local business activity, and stronger communities in Canada’s vast remote and rural northwestern B.C. region.

As mentioned above, the project is estimated to attract $33 billion in private investment. At a time when Canada badly needs capital inflows, productivity growth, and new export opportunities, the positive FID is a major economic boost.

The benefits don’t stop there. LNG Canada estimates that Phase 2 could generate more than $50 billion in government revenues over the life of the project ^[4], money that helps pay for healthcare, schools, infrastructure, and public services Canadians rely on.

Too often, opponents frame resource development as though it only benefits the companies involved, but that couldn’t be further from the truth. Projects like LNG Canada Phase 2 help fund the country. They help keep communities working, governments operating, and provide the wages necessary to put food on the table for Canadian and Indigenous families.

Coastal GasLink Phase 2 is Moving Ahead

Following the positive FID, Coastal GasLink Phase 2 will also proceed, says its proponent ^[5]. The existing pipeline currently moves about 2.1 billion cubic feet of natural gas per day. The expansion will nearly double that capacity by adding compressor stations and upgrading facilities along the existing 670-kilometre route from Dawson Creek to Kitimat, without building a new pipeline corridor ^[5].

Construction is expected to begin in early 2027, with as many as 2,100 people employed at peak activity across five sites. Service is expected in the early 2030s ^[5].

The first phase already showed what this kind of development can mean for families and communities. Building Coastal GasLink created about 25,700 full-time-equivalent jobs in B.C. and generated more than $1.8 billion in contracts for Indigenous and local businesses ^[5].

These aren’t just numbers. They represent economic reconciliation, families building careers, businesses growing, and communities sharing in the benefits of natural resource development.

Indigenous Ownership and Participation 

One of the most important parts of LNG Canada’s Phase 2 announcement is the opportunity for nearby First Nations to own a meaningful stake in the project’s future.

The positive FID enables five neighbouring First Nations, Gitga’at, Gitxaała, Haisla, Kitselas, and Kitsumkalum, to invest up to $1 billion in LNG storage infrastructure tied to the project ^[3]. It will be one of the largest Indigenous ownership positions in major Canadian infrastructure ever.

This is exactly the kind of partnership Canada should be advancing.

Economic reconciliation is not achieved through slogans. It happens when Indigenous communities can participate in major projects as owners, partners, workers, and decision-makers. It happens when development creates long-term own-source revenues and lasting prosperity.

If Canada wants to build major projects, this is the path forward.

The World is Asking for Canadian Natural Gas

Canada has spent years talking about being an energy superpower while selling almost all of its natural gas to just one customer: the United States.

That has to change.

In 2024, less than 0.01 percent of Canada’s natural gas exports went anywhere other than the U.S. New LNG export capacity gives Canada the chance to diversify its export markets, solidify itself as a go-to supplier, and strengthen its economy all at once ^[6].

And the demand is clearly there. Countries around the world have said they want Canadian LNG because we’re a reliable, trustworthy supplier.

South Korea plans to import at least 1.4 million tonnes per year of Canadian LNG for more than 30 years once Phase 2 reaches full production. Japan has called Canada an important partner in economic security. Germany has described its LNG relationship with Canada as strategic. France has said Canadian LNG projects are important for Europe. India has said it is willing to buy whatever Canada is offering in crude, LPG, and LNG. Other countries, including China, the Philippines, Taiwan, Greece, and Poland, have also signalled strong interest in Canadian energy.

The message could not be clearer: the world wants what Canada has.

LNG Strengthens Canada and Helps Our Allies

LNG Canada Phase 2 is about more than one terminal in Kitimat. It is about whether Canada is serious about turning its natural resource advantages into long-term prosperity.

Canadian LNG exports can create jobs, generate government revenue, support Indigenous ownership, attract investment, and improve our trade position. It can also help our trading partners reduce their dependence on less reliable suppliers and strengthen global energy security.

This is why projects like LNG Canada matter so much. They truly are mega nation-building opportunities that benefit not only Canadians, but the world.

And momentum is building in B.C. On September 21, the Tilbury Phase 2 LNG expansion in Delta received environmental assessment approval from the province and federal approval to move ahead to the next stage. The project could generate up to 6,200 full-time-equivalent person-years of employment during construction, 1,000 construction jobs, around 100 permanent jobs, and up to $1.7 billion in provincial GDP during construction ^[7].

Other projects, including Ksi Lisims LNG, are also on the cusp of moving forward, signing several supply agreements with international buyers, including firms from Germany, Australia, and the United Kingdom, over the past handful of months.

Canada should not waste this moment.

Canada Should Be Ready to Deliver

When the world asks for Canadian energy, the answer should be yes.

✅Yes to jobs.  

✅Yes to investment.  

✅Yes to Indigenous partnership and ownership.  

✅Yes to stronger public revenues.  

✅Yes to helping our trading partners.  

✅Yes to building the infrastructure Canada needs to compete.

LNG Canada Phase 2 reminds us that Canada still has enormous potential if we choose to develop it. We can create prosperity at home while supplying the world with the energy it needs.

That is good for British Columbia. Good for Indigenous communities. Good for workers. Good for government revenues. And it’s good for Canada.

Canada should be ready to deliver more LNG projects, whether in B.C., Quebec, or the Atlantic provinces.

Now let's get to work!

“This will make LNG Canada one of the largest LNG facilities in the world and it will help move Canada towards becoming one of the world’s Top 5 LNG exporting nations,”

LNG Canada announced Tuesday that it has made a final investment decision to go ahead with the Phase 2…

— Canada Action (@CanadaAction) September 29, 2026