Chinese Steel to Be Used Again in $33B LNG Canada Phase 2 Project

Chinese steel will once again be used in the $33-billion LNG Canada Phase 2 project in Kitimat, British Columbia.

The joint venture will purchase components from China Offshore Oil Engineering Co., a Chinese state-owned company that also built two liquefied natural gas processing units during the project’s first phase.

The decision comes despite the Canadian government’s earlier commitment to prioritize locally produced steel under its Buy Canadian policy. The government now says private-sector companies have the right to make their own supply-chain decisions.

LNG Canada spokesperson Paul Hagel said the decision was not driven by a preference for foreign steel but by the specialized manufacturing capabilities required for a project of this scale and complexity.

However, the company said 70 per cent of the steel required for new compressor stations to expand the plant’s pipeline network will be Canadian-made.