JGC-Fluor JV receives NTP for LNG Canada Phase 2 after FID
- JGC will recognize its US$7.5 billion share of the Phase 2 contract in fiscal 2026.
- Notice to Proceed was issued to the JGC-Fluor Joint Venture following LNG Canada's final investment decision.
- The contract is structured primarily as lump-sum turnkey, with certain portions to be executed on a cost-plus basis.
- In August 2025 JGC and Fluor were awarded the FEED update and estimation work after delivering Phase 1; Phase 1 has ~14 million tonnes annual capacity and a 40-year export licence.
Contract award and NTP
JGC Corporation and Fluor Corporation's joint venture has received Notice to Proceed for the Phase 2 expansion of the LNG Canada export facility in Kitimat, British Columbia, following LNG Canada's final investment decision.
Financial recognition and contract structure
JGC will recognize its US$7.5 billion share of the multibillion-dollar contract in fiscal 2026. The contract is structured primarily on a lump-sum turnkey basis, with certain portions to be executed on a cost-plus basis.
Path to FID
In August 2025 JGC and Fluor were awarded a contract to update the Front End Engineering and Design for the proposed Phase 2 expansion and to provide estimation services for the related EPC scope, following successful delivery of Phase 1. After completion of the FEED update and further advancement of the project execution plan to a decision-ready stage, LNG Canada announced its final investment decision and issued NTP to the joint venture.
Project context and ownership
The LNG Canada facility benefits from access to abundant, low-cost natural gas and an ice-free harbour. The Phase 1 plant has an annual production capacity of approximately 14 million tonnes of LNG and will operate under a 40-year export licence. LNG Canada is a joint venture of Shell (40%), PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%) and KOGAS (5%).
Source: JGC Holdings