Project Spotlight: LNG Canada Phase 2 Storage Tank Equity Option
- Jul 16
- 3 min read
Five British Columbia First Nations have been granted an equity option to invest up to CAD $1 billion for majority ownership of the storage tank planned for LNG Canada's proposed Phase 2 expansion in Kitimat — not a direct equity stake in LNG Canada itself, but ownership of the tank and associated infrastructure, leased back to the project for its operating life. Announced July 15, 2026, the deal is structured through MNT Investments LP, representing the economic development organizations of the Gitga'at, Gitxaała, Haisla, Kitselas, and Kitsumkalum Nations, and would rank among the largest Indigenous ownership positions in major Canadian infrastructure if it closes.
Project Overview
LNG Canada's Kitimat facility began operations on June 30, 2025 — Canada's first major LNG export facility — and has shipped more than 100 cargoes to date. The proposed Phase 2 expansion would add two more LNG trains, potentially doubling total plant capacity to as much as 30 million tonnes per year. The planned Phase 2 storage tank at the centre of this deal would be the second massive tank on site: 225,000 cubic metres in volume, the largest in Canada and among the largest in the world, standing 56 metres tall (roughly a 12-storey building) with a 92-metre diameter. The equity option is conditional on LNG Canada's joint venture participants — Shell, PETRONAS, PetroChina, Mitsubishi, and Korea Gas Corporation — approving the Phase 2 expansion, with a final investment decision targeted by the end of 2026.
Project Details
Location: Kitimat, British Columbia
Technology: LNG storage tank (225,000 m³)
Capacity: Phase 2 could bring total plant capacity to as much as 30 million tonnes per year
Status: Equity option agreement announced July 15, 2026; conditional on Phase 2 FID, targeted for end of 2026
Deal Value: Option to invest up to CAD $1 billion
Industry Partners: LNG Canada Development Inc. and joint venture participants (Shell, PETRONAS, PetroChina, Mitsubishi, Korea Gas Corporation)
Indigenous Partner: MNT Investments LP representing Gitga'at First Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation, and Kitsumkalum
Indigenous Ownership
MNT Investments LP would have the option to acquire a majority equity interest in a special purpose entity created specifically to purchase the Phase 2 storage tank. That entity would then lease the tank back to LNG Canada for the operational life of the project, with LNG Canada continuing to operate and maintain the facility. If completed, the deal would represent one of the largest Indigenous ownership positions in major Canadian infrastructure.
"A pathway for Indigenous equity in our proposed Phase 2 expansion." Chris Cooper, Chief Executive Officer, LNG Canada
Financial Details
Option size: up to CAD $1 billion (~US$710.8 million) for a majority interest in the special purpose entity that would own the tank
Structure: a sale-leaseback — MNT's entity would purchase the tank and lease it back to LNG Canada for the project's operating life, rather than holding equity directly in LNG Canada or the Phase 2 expansion itself
No debt/equity financing split or loan guarantee arrangements for MNT's side of the transaction have been publicly disclosed at this stage
The transaction remains conditional on LNG Canada's joint venture participants sanctioning Phase 2
Why This Project Matters
A sale-leaseback is a unique structure for Indigenous ownership in Canada. Rather than acquiring equity in the operating asset or company, MNT would own a single, discrete piece of infrastructure and lease it back. This structure is similar to the East Tank Farm deal between Suncor, Fort McKay First Nation, and the Mikisew Cree First Nation in Alberta. By isolating a specific asset from the broader commercial and construction risk of the LNG facility itself, a lower risk profile for Indigenous investors and lenders can be achieved.
Indigenous Energy Ownership Tracker
The LNG Canada Phase 2 Storage Tank Equity Option is one of the many Indigenous-owned energy assets tracked in IEM's Indigenous Energy Ownership Tracker (IEOT). It was built to centralize project ownership details, identify partnership models, and improve transparency across Canada's energy transition.
🔗 Explore the IEOT:
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