LNG Canada to use Chinese steel on $33-billion expansion project in Kitimat, B.C.

Source: CBC Politics
Date: 2026-10-02 14:51:57.0
Tags: [National, British Columbia, Energy, Trade, Industry, Infrastructure]

LNG Canada has announced that its joint venture partners will utilize the state-owned China Offshore Oil Engineering Co., Ltd. (COOEC) to source specialized fabricated steel modules for its $33-billion Phase 2 expansion project in Kitimat, B.C., citing a lack of domestic fabrication capacity. The expansion will add two new processing units, increasing production capacity from 14 to 28 megatonnes per year by the early 2030s. While Prime Minister Mark Carney's newly introduced federal Major Projects Office and Buy Canadian policies emphasize domestic sourcing, private sector energy companies retain the autonomy to determine their supply chains. Meanwhile, pipeline operator Coastal GasLink targets approximately 70% Canadian steel—around 15,000 tonnes—for the compressor stations required to support the terminal's expanded throughput.