BC Premier Heads to China to Secure LNG Canada Phase 2 Investment Decision
According to a Canadian Press report via BOE Report, BC Premier David Eby departed Vancouver on June 27 for a trade mission to Beijing, Shanghai, and Guangzhou, with LNG Canada Phase 2 at the top of his agenda.
The FID That Could Unlock a Construction Wave
The centerpiece of Eby’s China trip is a meeting with PetroChina to discuss the second phase of the LNG facility expansion in Kitimat, BC. Eby described the project as the “really big fish” of the mission, noting a final investment decision is expected later this year. He pegged the project’s value at $28 billion in provincial revenue for public services.
Eby framed the broader trip as a trade diversification push, noting China is BC’s second-largest trading partner and that the province has been “too dependent on the United States.” He cited US tariffs as a significant drag on BC’s forestry sector and expressed hope that Chinese tariffs on BC seafood and other goods would be lifted. The trip was scheduled to run June 27 to July 3, but was cut short at the federal government’s request to finalize a memorandum of understanding between BC and Ottawa on major project revenue sharing.
What It Means for Subcontractors
- A positive final investment decision on LNG Canada Phase 2 would trigger a significant wave of construction activity in Kitimat and along pipeline corridors in northern BC, creating demand for civil, mechanical, piping, and marine construction subcontractors. US-based contractors have historically participated in major Canadian LNG builds and should watch this FID closely.
- Western Canadian and US field service companies should monitor the FID timeline closely. A decision later this year or into 2027 means procurement and pre-construction work could begin relatively soon, and early positioning with prime contractors matters.
- The BC-Ottawa memorandum of understanding on major projects could affect how federal permitting and project approvals are handled in BC, potentially streamlining timelines for large infrastructure builds that subcontractors depend on.
- Trade diversification signals longer-term LNG export demand from Asia, which supports the business case not just for Phase 2 but for additional terminal and pipeline projects along the BC coast.
