Fluor Corporation wins US$7.5B share of LNG Canada Phase 2 contract
Full notice to proceed follows LNG Canada's Sept. 28 investment decision; the venture will add two liquefaction trains and a storage tank.
Ines Halvorsen
Sept. 28's investment decision cleared a US$7.5 billion share of the LNG Canada Phase 2 construction contract for Fluor Corporation NYSEFLR, whose joint venture has received a full notice to proceed. Fluor said in its Sept. 29 release it will recognize its US$7.5 billion portion of the contract in fiscal third-quarter 2026. The customer is LNG Canada, and the venture's mandate covers engineering, procurement, fabrication, construction and commissioning; the release gives no contract term or completion date.
The NYSEFLR quote showed Fluor shares closed Monday at US$49.22 on the New York Stock Exchange as of 4:00:08 p.m. EDT. Fluor announced the contract Tuesday morning, so that close precedes the award's disclosure.
Fluor's Sept. 29 plan calls for two more liquefaction trains and one additional LNG storage tank at the Kitimat facility. The company says the expansion would double annual production capacity to approximately 28 million tonnes. The figure describes the completed plant, while Fluor's release gives no first-production target for Phase 2.
The June 1 limited notice let the venture start planning for the proposed expansion ahead of LNG Canada's final investment decision. The full notice to proceed disclosed Sept. 29 moves the work into engineering, procurement and construction. Fluor says LNG production from Phase 1 began in June 2025, and it completed handover in October 2025.
JGC Holdings Corporation TYO1963 said in a June 2 release that its JGC Corporation unit was Fluor's partner on the proposed expansion. Fluor says the Canadian execution venture is owned equally by Fluor Canada Ltd. and JGC Constructors (No2) BC Ltd. The US$7.5 billion figure is Fluor's share, while the total venture contract value and LNG Canada's overall Phase 2 budget were not stated in its release.
"Our teams will apply the experience and lessons learned from Phase 1 to deliver a successful project," Fluor chief executive Jim Breuer said in the Sept. 29 release.
Pipeline Construction Could Start in Early 2027
TC Energy Corporation TSETRP NYSETRP said in its Sept. 29 release that Coastal GasLink Phase 2 will proceed following the same LNG Canada decision. The existing pipeline currently transports approximately 2.1 billion cubic feet of gas a day, and TC Energy expects new compressor stations and facility upgrades to nearly double its capacity. Those works are separate from Fluor's contract for the export plant.
TC Energy says LNG Canada will manage the pipeline construction, while Coastal GasLink remains owner, operator and permit holder. It expects the pipeline work to start in early 2027 and to enter service in the early 2030s. Neither TC Energy's release nor Fluor's gives equipment delivery dates for the compressors or new liquefaction trains.
Read more: TC Energy advances Coastal GasLink Phase 2 after LNG Canada FID
Fluor's next stated financial milestone is recognition of its US$7.5 billion contract share in fiscal third-quarter 2026. Its Sept. 29 release does not set a first-LNG or handover date for the expanded plant.
