Fluor-JGC Joint Venture Gets Limited NTP for LNG Canada Phase 2 Expansion in Kitimat
According to a Business Wire report via BOE Report, Fluor Corporation announced on June 1 that its JGC Fluor BC LNG II joint venture with JGC Corporation has received a limited notice to proceed (LNTP) for the proposed Phase 2 expansion of the LNG Canada export facility in Kitimat, British Columbia.
What the LNTP Means for the Project
The LNTP allows the joint venture, known as JFJV2, to begin early planning activities and advance key work in support of a potential Phase 2 final investment decision (FID) by LNG Canada. If an FID is reached, Phase 2 would double the facility’s current annual production capacity of approximately 14 million tonnes of LNG.
The same joint venture partners built Phase 1, delivering two processing trains along with storage tanks, a rail yard, a water treatment facility, flare stacks, and a marine terminal. That work was completed in 2025. “The LNTP enables us to initiate early planning and move forward with key activities to support a proposed Phase 2 final investment decision by LNG Canada,” said Pierre Bechelany, Fluor’s Business Group President of Energy Solutions.
LNG Canada is owned by Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), and KOGAS (5%). JFJV2 is a Canadian joint venture split evenly between Fluor Canada Ltd. and JGC Constructors (No2) BC Ltd.
What It Means for Subcontractors
- The LNTP signals that early engineering and planning work is beginning now, meaning subcontractors and service companies already active in the Kitimat corridor should expect initial scoping and procurement activity ahead of any full FID.
- Phase 1 established a large regional contractor base in northern BC. Those firms with proven performance on Phase 1 are best positioned to pursue Phase 2 opportunities as the project ramps up.
- An FID remains conditional, so field service companies should treat current activity as pre-FID mobilization, not a guaranteed full build. Monitor LNG Canada announcements closely before committing significant resources.
- The 40-year operating license on the facility suggests long-term maintenance and operations contracts will follow construction, offering multi-year revenue opportunities beyond the initial build phase.
