Jul 06, 2023

Project updates

LNG Canada Project Mid-Year Update Summer 2023


I’m pleased to present LNG Canada’s 2023 mid-year update.

It’s been another exceptional year of progress for our company, our project, and the communities in which we live and work. We’re honoured to be building Canada’s first LNG export facility in Kitimat, British Columbia, in the traditional territory of the Haisla Nation.

With our project now close to 85% complete overall, we remain on track to shipping our first cargos of low-carbon, made-in B.C. liquified natural gas by mid-decade.

We chose to build our world-leading facility in Kitimat—where we’re fortunate to be welcomed by First Nations—for its many attributes: its location in a deep, ice-free harbour, its proximity to key export markets, and most of all, its people.

Northwestern B.C. is home to hard-working, highly skilled individuals from many different professions and trades, representing dozens of craft unions.

LNG Canada and our engineering, procurement and construction contractor, the JGC Fluor joint venture, have been truly blessed to have such an outstanding workforce building our facility. The work they’re performing has never been more important, or more visible.

From the start, we determined to set the benchmark for responsible LNG development, not just here in Canada, but around the world.

It’s an exciting time for LNG. People everywhere are learning about the transformational role this important energy source will play in a lower carbon future, and in the global energy transition that’s already underway. Canada is very well-positioned to answer the call.

And as world events continue to demonstrate, a reliable supply of responsibly produced energy should never be taken for granted. Our LNG will provide security of supply for global markets that can rely on Canada’s natural gas reserves to advance their economies and reduce global GHG emissions. LNG Canada is designed to be the world’s best, lowest carbon producing LNG facility.

Setting the world’s highest standards means building our facility safely. And it means delivering on our commitments to local communities.

As the largest energy investment in Canadian history, the LNG Canada project is already delivering meaningful, long-term employment opportunities and substantial economic benefits, with clear results. The cumulative value of our project’s contracts and subcontracts to local, Indigenous and other businesses in B.C. alone continues to grow, and has now exceeded $4 billion in total.

Today, more than 6,500 individuals from B.C. and other Canadian provinces are employed at our site in Kitimat. That’s in addition to the thousands of people working on the nearly complete Coastal GasLink pipeline that will deliver natural gas to our facility for liquification and export.

We’ve invested over $5 million in workforce development programs—meaningful trades training and development programs designed to increase the participation of local area residents, Indigenous communities and British Columbians in trades and other construction-related activities, not just limited to our project.

We’ve also contributed more than $10 million to programs and equipment benefiting Kitimat, Terrace and First Nations communities, and enabled and supported the addition of new long-term new housing in the Kitimat and Terrace region.

In addition, we contribute millions of dollars in local property taxes each year. That’s more money to support and improve public infrastructure and services.

Once in operations, we’ll rely on the skills and expertise of hundreds of men and women, many of them homegrown from local communities, to run our facility safely and smoothly.

Those are some of the local and regional benefits we’re delivering. There’s potential for even more. With our five joint venture participants, we continue to evaluate the timeline and scope for a second phase expansion.

We see an opportunity to build on our early Phase 1 successes and the benefits it is providing British Columbians and Canadians. Those include additional jobs in construction, more local contracts, and new infrastructure.

LNG Canada has identified potential opportunities to further advance electrification at our export facility in Kitimat with a Phase 2 expansion, aligned with an availability of sufficient reliable power.

We strongly encourage BC Hydro and the provincial government to find the pathways needed to unlock the potential for additional electric power to a broad base of local stakeholders and initiatives, including LNG Canada’s Phase 2.

While our Phase 2 final investment decision must also take into account overall competitiveness, affordability, future GHG emissions, and, of course, timelines, our discussions with government have been encouraging.

Premier Eby and his government are aware of the benefits that further LNG development in B.C. can offer, and how it is already helping advance reconciliation with First Nations and Indigenous peoples.

We were also pleased to see Premier Eby and the premiers from the other western provinces and territories refer in a joint statement two weeks ago to the role that Canadian LNG exports can play in reducing global emissions, and in global energy security.

I’m proud to be part of a movement to provide local benefits, drive innovation, meet human needs and deliver the cleanest possible liquified natural gas as a preferred energy source.

As societies transition towards a net-zero world, people want and expect access to cleaner, lower-carbon energy. Together, with British Columbian communities and the support and encouragement from all levels of government, LNG Canada can play an even greater role in this energy transition.

Thank you for your interest in our project.

Jason Klein, LNG Canada Chief Executive Officer

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