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LNG Canada Says Yes: Phase 2 Doubles Kitimat to 28 Million Tonnes
AMAZING NEWS FOR BC AND CANADA!
The wait is over. LNG Canada announced a final investment decision on Phase 2 yesterday, doubling Kitimat capacity from 14 to 28 million tonnes a year with two more trains, a storage tank and a second loading berth. The build needs up to 4,000 workers in Kitimat, and Coastal GasLink Phase 2 adds five compressor stations and about 2,100 more jobs, with construction starting in early 2027. Up to $1 billion in equity is open to five First Nations, and the project promises $50 billion-plus in government revenue over its life. That is private capital, not a subsidy, and it lands in a province where the government just called a snap election and the condo tax is choking home building. Contractors now face a labour crunch: 6,000-plus skilled workers wanted at one time, on top of every other major project in northern BC and Alberta’s gas patch. Ottawa and Victoria should clear permits and skills bottlenecks now. The Shell decision shows what a clear yes can do.
THE NUMBERS — STATISTICS CANADA
GDP by Industry, July 2026 — Real GDP was flat, but construction rose 1.3%, its fourth straight monthly gain. Non-residential building jumped 2.9% (biggest since January 2022, on an Ontario hospital) and residential rose 0.9%. Manufacturing fell 0.9%, mining and oil and gas fell 0.5%, and the August advance estimate is +0.2%. Statistics Canada
Energy Statistics, July 2026 — Primary energy production rose 2.7% year over year to 2.1 million gigajoules, with five of six subsectors higher. Statistics Canada
FROM THE ECONOMISTS
ATB Economics — Flat spot — Alberta is on track for 2.6% real GDP growth in 2026, nearly three times the national 0.9%. ATB expects the Bank of Canada to hold through 2026, with tariffs the main threat to fourth-quarter growth.
WORTH WATCHING
Bank of Canada, October 28 — Next rate decision. RBC calls it “a close call”, with tariffs able to cut growth below 1% against lingering inflation risk.
Counter-Tariffs on U.S. Building Materials — Industry warns Ottawa’s retaliation will raise costs for builders. Watch bids and quotes on materials priced in U.S. dollars.
IN BRIEF
ICBA — B.C.’s export troubles began well before the recent U.S. tariffs Weak trade performance is a home-grown problem, not just a tariff one.
COFFEE & CONSTRUCTION
Every Monday, Wednesday and Friday, ICBA's Jordan Bateman serves up a 10-minute rundown of the news facing BC and Alberta construction on the Coffee & Construction podcast. Catch the latest episode: C&C #36: A Potash Pot of Port Money. Subscribe free on YouTube (@ICBATV), ICBA's socials, or wherever you download podcasts.