British Columbia: LNG Canada has confirmed that it will stick with its decision to use Chinese steel for the second phase of the expansion project in Kitimat. The company stated that this decision was driven by a lack of domestic manufacturing capacity, clarifying that it was a necessity rather than a preference.
The company pointed out that Canada lacks fabrication facilities capable of producing large modules of this size and complexity. It further clarified that foreign steel was relied upon to ensure transportability by sea, as moving such components by road is impossible. However, nearly 70 percent (approximately 15,000 tonnes) of the steel required for the project’s pipeline compressor will be sourced from Canadian companies.
With an expected cost exceeding $30 billion, Phase 2 expansion will double the production capacity of the Kitimat plant from 14 million tonnes to 28 million tonnes per year. Prime Minister Mark Carney expressed hope that upon completion, this facility will become the second-largest LNG hub in the world. The project is expected to create thousands of new jobs and enable the Canadian energy sector to secure a significant footprint in global markets.
Meanwhile, the opposition Conservative Party launched a strong critique against the decision to use Chinese steel in the project. Ned Kuruc, MP for Hamilton East—Stoney Creek, alleged that this move contradicts the Prime Minister’s ‘Buy Canadian’ promise. He added that using Chinese steel while the country’s domestic steel workers face employment crises is unacceptable. LNG Canada is a joint venture comprising Shell, PetroChina, Malaysia’s Petronas, Japan’s Mitsubishi, and South Korea’s KOGAS.
