LNG Canada to use Chinese steel on $33-billion expansion project in Kitimat, B.C.

LNG Canada to use Chinese steel on $33‑billion expansion in Kitimat, B.C.

LNG Canada has announced that it will again source Chinese steel for the specialized fabrication it says is required for the company’s $33‑billion Phase 2 expansion at the Kitimat facility in British Columbia.

Background on steel sourcing

When the joint venture made its final investment decision for Phase 1 of the Kitimat plant in 2018, it sought and received an exemption from steep anti‑dumping and countervailing duties that had been levied on fabricated steel imported from China. The exemption was granted because the components in question do not directly compete with products made by Canadian producers.

Current status

• Phase 2 of the expansion will again rely on Chinese steel for specialized fabrication.
• Canadian producers have not objected to the use of these components.
• The exemption that was previously granted in 2018 remains in effect for the new phase.

According to LNG Canada, the specialized fabrication capability that Chinese steel provides is essential for the planned expansion, which will add significant capacity to the company’s LNG operations in Kitimat.