MidOcean Energy Joins LNG Canada Phase 2
MidOcean Energy (“MidOcean”), a liquefied natural gas (LNG) company formed and managed by EIG, has announced its participation in Phase 2 of the LNG Canada project through its partnership with PETRONAS. The announcement follows the Final Investment Decision (FID) reached by the LNG Canada joint venture partners on September 29, 2026, marking a significant step forward for the next stage of development at the major Canadian LNG export project.
MidOcean’s participation in Phase 2 builds on its existing investment relationship with PETRONAS and its interests in the upstream and LNG components of the integrated project. The company’s expanded involvement is expected to increase its exposure to LNG production while strengthening its position across the natural gas value chain, from resource development in British Columbia to liquefaction and exports to international markets.
The participation follows MidOcean’s completion in December 2025 of the acquisition of a 20% interest in the North Montney Upstream Joint Venture (NMJV). The joint venture holds PETRONAS’ upstream investment in Canada and provides MidOcean with exposure to natural gas resources in the North Montney region. As part of the same transaction, MidOcean acquired a 20% interest in the North Montney LNG Limited Partnership (NMLLP), which holds PETRONAS’ 25% participating interest in the LNG Canada Project.
Through these interests, MidOcean has established a position that connects upstream natural gas production with downstream LNG liquefaction and exports. Its participation in Phase 2 will further develop that integrated exposure as LNG Canada moves ahead with its planned expansion.
Phase 2 of LNG Canada will add two additional liquefaction trains at the project’s facility in Kitimat, British Columbia. Once completed, the expansion will increase the facility’s overall production capacity from approximately 14 million tonnes per annum (mtpa) to 28 mtpa. The additional capacity will effectively double the project’s planned LNG production and expand Canada’s role as an LNG supplier to international markets.
Located on Canada’s Pacific Coast, LNG Canada is positioned to connect Canadian natural gas resources with customers in markets across the Pacific Basin. The Phase 2 expansion is expected to build on the project’s existing infrastructure, resource base and access to Pacific shipping routes, providing additional opportunities to supply LNG to key Asian markets.
For MidOcean, the expansion will increase its associated LNG volumes from approximately 0.7 mtpa to 1.4 mtpa. The increase represents a substantial expansion in the company’s exposure to LNG production from the LNG Canada project and further strengthens its involvement in an integrated Canadian gas and LNG platform.
The expanded investment is also aligned with MidOcean’s broader strategy of building a diversified portfolio of LNG assets around the world. The company has focused on investments intended to provide exposure to competitive LNG resources and infrastructure while maintaining a presence across different geographic markets and stages of the LNG value chain.
MidOcean said its participation in LNG Canada Phase 2 reinforces its objective of developing a large, diversified and cost- and carbon-competitive global LNG portfolio. The company also views its expanded involvement as an extension of its relationship with PETRONAS and as part of its strategy of partnering on large-scale LNG projects with long-term international market potential.
The LNG Canada Phase 2 expansion is expected to benefit from the project’s location on the Pacific Coast. Its proximity to Asian markets provides an alternative route for Canadian natural gas to reach international buyers compared with LNG projects located on North America’s Atlantic or Gulf coasts. The Pacific Basin location can provide access to established LNG demand centers while utilizing shipping routes across the Pacific Ocean.
The project is also connected to the significant natural gas resources of Western Canada. MidOcean’s interests in the North Montney Upstream Joint Venture provide an upstream component to its investment, allowing the company to participate in the resource base that supports its broader Canadian LNG position.
De la Rey Venter, CEO of MidOcean, said the company has maintained a long-standing view of LNG Canada as a highly competitive project because of its scale, resource depth and access to Pacific Basin markets. He described participation in Phase 2 as a natural progression of MidOcean’s existing involvement and highlighted the strengthened partnership with PETRONAS.
“We have long believed in LNG Canada as one of the world’s most advantaged projects: with the scale, resource depth, and Pacific Basin access to deliver reliable energy to global markets for decades,” said Venter. “Participating in Phase 2 is a natural next step for us, and we have strengthened our partnership with PETRONAS while advancing our strategy of investing in high-quality, globally competitive LNG assets.”
The FID reached by the LNG Canada joint venture partners on September 29, 2026, provides the foundation for advancing the next phase of the project. The addition of two liquefaction trains will expand the facility’s capacity and increase the volume of Canadian LNG available for international markets.
For MidOcean, the decision also represents a continuation of its investment following the December 2025 acquisition. Its interests in both the NMJV and NMLLP give the company exposure to the upstream North Montney resources and the downstream LNG Canada project. With Phase 2, the company’s associated LNG volumes are expected to rise to 1.4 mtpa.
The expanded position further integrates MidOcean into the Canadian natural gas and LNG value chain. It combines upstream resource exposure with liquefaction and export infrastructure and provides the company with an increased stake in a project designed to serve international LNG demand.
As global energy markets continue to rely on LNG as an internationally traded source of natural gas, new and expanded liquefaction capacity remains an important component of supply development. LNG Canada Phase 2 will increase the amount of LNG that can be produced at the Kitimat facility while strengthening the connection between Canadian gas resources and customers in the Pacific Basin.
MidOcean’s participation consequently represents both an expansion of its existing Canadian investment and a further step in its global LNG portfolio strategy. By increasing its associated LNG volumes from 0.7 mtpa to 1.4 mtpa, the company will deepen its exposure to LNG Canada while maintaining its integrated position across upstream gas production, liquefaction and export.
The development also strengthens MidOcean’s partnership with PETRONAS, building on the interests acquired in 2025. As LNG Canada advances Phase 2, MidOcean will remain positioned across the project’s broader value chain, from North Montney natural gas resources to LNG production at Kitimat and exports to international markets.
With the FID now reached, the Phase 2 expansion represents the next major stage in the development of LNG Canada. The planned addition of two liquefaction trains will raise total capacity to 28 mtpa, providing expanded Canadian LNG supply and further establishing the Kitimat facility as a Pacific-facing export platform.
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