Vaughn Palmer: B.C. premier David Eby openly bullish on Kitimat LNG expansion

From left, B.C. Energy Minister Adrian Dix, Premier David Eby and federal Natural Resources Minister Tim Hodgson at a news conference on May 14, 2026, in Vancouver. Photo by Herman Thind /Government of B.C.

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VICTORIA — Premier David Eby sounded almost certain this week when discussing the likelihood that Shell and its partners will greenlight a multi-billion expansion of LNG Canada in Kitimat before the end of the year.

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“When — and I’m saying when, I’m very hopeful here — when LNG Canada reaches final investment decision before the end of the year, it will be the largest private-sector investment in Canadian history,” Eby told reporters on Thursday.

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The premier did slip in an “if” or two, later in the news conference.

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But he also cited LNG Canada’s recent commitment to the financial resources necessary to get the final investment decision across the line.

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“To us, the decision to release those hundreds of millions of dollars into moving toward final investment decision is a major vote of confidence in the project,” said Eby. “We think that’s worth celebrating.”

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Chiming agreement was federal Energy Minister Tim Hodgson, who joined Eby in Vancouver. Hodgson noted that the pre-final investment decision was made by Shell and its four partners in LNG Canada.

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“When you see countries — Japan, Korea, Malaysia, Shell operating all over the world, and China — all saying, we can put our money anywhere and we want to put it in this country, that is a huge show of support.”

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Hodgson and Eby announced on behalf of their governments an “enhanced co-operation agreement to advance LNG Canada Phase 2,” a title not chosen for the ease with which it would fit into headlines.

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It commits to working with Indigenous nations, promoting competitiveness, ensuring jobs and training, and, above all, doing what it takes to close the deal on the final investment decision.

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Also in attendance Thursday was LNG Canada CEO Chris Cooper, who shed some light on the assurances Shell and partners were seeking before signing off.

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“There’s some supply chain pieces that we just need to finish with contractors. There are labour force things with those contractors. There are some final pieces with the government and with First Nations.”

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He also mentioned a pending agreement with the federal government on carbon capture and competitiveness.

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“What do international investors really want?” continued Cooper. “They want clarity on policy, they want clarity on regulatory, and they want help to be competitive. It’s a very, very tough world out there to make LNG competitive.

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“Most LNG projects don’t get to final investment decision,” he said. “We had about 15 try in 2018, and only one went ahead back then.”

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That one was LNG Canada Phase 1, which is not operational.

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The LNG Canada CEO also fielded questions about health concerns, related to the high level of burning off natural gas by the Kitimat facility.

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“We are flaring more,” he acknowledged. “That’s a pretty normal thing when you start an LNG plant up.”