Canada LNG Phase 2

Fast Track Major Projects – First Tranche (September 2025):

Purpose: To double LNG Canada’s production of liquefied natural gas for exportation to the Asian market.

Location: Kitimat, BC

Project Status: In January 2026, it was reported that both Shell and Mitsubishi are probing the sale of the ownership block. Mitsubishi is looking to sell its all of its interest, however Shell is look to sell 30% of their holdings. Shells stake is 40% of the total project ownership. 

Cost: and estimated $15 billion.

Subsidies, Tax Relief, Loans, Infrastructure, Regulation Amendments

Federal Infrastructure Funding:

• • $275 million for energy-efficient turbines and the Haisla Bridge.
  • Tariff Exemptions: A significant tariff waiver on imported steel modules, estimated to be around C$1 billion.
  • Accelerated Capital Cost Allowances (CCAs);
  • $3 billion North Coast Transmission Line project;
  • Fast-track regulatory approvals and coordinate funding strategies: amendments to the Canadian Energy Regulator Act to extend licenses from 40 to 50 years to “provide greater certainty for proponents on their ability to receive returns of their investments for long term“.

Provincial Support: 

• • The BC government committed billions through reduced electricity rates, foregone revenues, and other infrastructure, totaling roughly C$2.16 billion by 2030.
  • Other Programs: Federal funding for community programs in Kitimat and Terrace.