JGC Holdings Corporation

Fluor Corporation's joint venture with JGC Corporation has been selected to deliver the second phase of the LNG Canada export facility in Kitimat, British Columbia, following LNG Canada's final investment decision. The JGC-Fluor joint venture received a notice to proceed covering engineering, procurement, fabrication, construction and commissioning for Phase 2, and Fluor expects to recognize its $7.5 billion share of the multibillion-dollar contract in the third quarter of fiscal 2026. Phase 2 will be built adjacent to the existing facility and involves construction and commissioning of an additional LNG storage tank and two new liquefaction units, or trains, which are expected to double the facility's production capacity to approximately 28 million tonnes per year. The expansion will be executed by JGC Fluor BC LNG II JV, a Canadian joint venture owned equally by Fluor Canada Ltd. and JGC Constructors (No. 2) BC Ltd., and LNG Canada is backed by Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. The award follows the joint venture's delivery of Phase 1, where LNG production began in June 2025 and facility handover was completed in October 2025, and it converts Fluor's front-end pipeline into a major execution project after the company reported $6.1 billion in second-quarter new awards and $26.9 billion in backlog.

Shell plc has taken a final investment decision on the second phase of the LNG Canada project in Kitimat, British Columbia, clearing the way for an expansion that will double the facility's production capacity. Phase 2 will add two LNG processing trains and lift total production capacity from 14 million tonnes per annum to 28 mtpa, with commercial operations expected to begin in the early 2030s. Shell owns a 40% stake in the joint venture, alongside PETRONAS with 25%, PetroChina with 15%, Mitsubishi Corporation with 15% and Korea Gas Corporation with 5%, and expects to receive nearly 6 mtpa of additional LNG once Phase 2 comes online. The decision also unlocked TC Energy Corporation's related expansion of the Coastal GasLink pipeline, which currently transports about 2.1 billion cubic feet per day and is designed to nearly double that capacity along the existing 670-kilometer route to Kitimat. Fluor Corporation said its joint venture with JGC Corporation has been selected to provide engineering, procurement, fabrication, construction and commissioning services for Phase 2, with Fluor's share of the award valued at approximately $7.5 billion and expected to enter its backlog in the third quarter of fiscal 2026.

Yemen's Iran-backed Houthi group announced it attacked two Saudi oil tankers near the Bab el-Mandeb Strait in the Red Sea, heightening fears of a double blockade that would affect safe passage through both the critical energy chokepoint of the Strait of Hormuz and its alternative route, the Red Sea. In light of this development, energy-related companies such as INPEX, Japan Petroleum Exploration, JGC Holdings, and Chiyoda Corporation are likely to draw attention.

UTM Offshore has signed a gas sales agreement with Seplat Energy and the Nigerian National Petroleum Company for gas from the deepwater Yoho field, advancing Nigeria's first indigenous-led floating liquefied natural gas project. The facility is designed to process 176 million cubic feet per day and is targeting first LNG shipments in 2030, with engineering and pre-construction work already complete. Financing includes debt capital from Afreximbank and equity from NNPC and the Delta State Government, while JGC Holdings and Technip Energies are assessing the EPC contract. The project is part of Nigeria's Decade of Gas Initiative and will also supply around 300,000 tonnes of LPG annually to the domestic market.

Mitsubishi Electric has been selected by the Japan Organization for Metals and Energy Security to verify technologies that use satellite data to identify and measure greenhouse gas emission sources. The publicly solicited project will run through the fiscal year ending March 2027, with Mitsubishi Electric signing a contract to participate. The company aims to commercialize a service that visualizes emissions for companies and local governments, collaborating with Satellite Data Services, JGC Corporation, Mitsubishi Electric Software, GHGSat, and leveraging expertise from MUFG Bank. The verification will focus on methane, which has a higher global warming potential than CO2 and is a key concern in LNG supply chains.