Next phase a nod to Malaysia’s expertise

By the Editorial Team · Thursday, October 1, 2026

Malaysia’s PETRONAS and its partners have committed to the C$33 billion Phase 2 expansion of the LNG Canada facility, which will double its liquefied natural gas output in British Columbia. This development is expected to create over 4,000 construction jobs and solidify LNG Canada’s status as one of the world’s largest LNG producers, enhancing global energy supply and economic ties between Malaysia and Canada.

Malaysia’s national oil and gas company, PETRONAS, along with its international partners, has reached a final investment decision to proceed with the C$33 billion (approximately RM94.7 billion) Phase 2 expansion of the LNG Canada facility in British Columbia. The announcement marks a significant step forward for the project located in Kitimat, aiming to double the site’s liquefied natural gas (LNG) production capacity from 14 million to 28 million tonnes annually.

The expansion plan includes constructing an additional LNG storage tank, a condensate tank, and a loading berth, as well as enhancing utility and processing infrastructure. This development positions LNG Canada as one of the largest LNG facilities globally once completed.

LNG Canada is a joint venture composed of Shell Canada holding a 40% stake, PETRONAS with 25%, followed by PetroChina and Mitsubishi Corporation each owning 15%, and Korea Gas Corporation (KOGAS) with 5%. The consortium’s decision to advance the project underlines the confidence in the venture’s strategic importance and the capabilities of the involved partners.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim acknowledged the achievement, emphasizing the recognition of Malaysia’s expertise in managing extensive energy projects in partnership with global players. "Congratulations to the entire PETRONAS team on this achievement," he said via a Facebook post. Anwar also expressed gratitude to Canadian Prime Minister Mark Carney for the support extended to PETRONAS by the Canadian government, highlighting the broader diplomatic and economic ties between Malaysia and Canada.

From the Canadian perspective, the investment is expected to create more than 4,000 direct jobs during the construction phase, contributing to local employment and economic growth. The Canadian Prime Minister’s Office confirmed that the project would establish LNG Canada as the world’s second-largest LNG facility, reinforcing Canada’s position in the global energy market.

While the project has been widely welcomed by both Malaysian and Canadian officials, there has been limited public commentary on potential environmental considerations or indigenous community impacts associated with the expansion. The focus remains on the large-scale economic benefits and international cooperation achieved through this joint venture.

Overall, the commitment to the LNG Canada Phase 2 expansion signals a notable collaboration among leading energy companies across Asia, North America, and Europe, reflecting ongoing trends in global LNG demand and the strategic importance of securing diverse energy sources for international markets.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.