17 Jul 2026 5 min read

LNG Canada Phase 2 Financing Updates; Vitreo Minerals Frac sand Mine Approved

Highlights

Federal government continues to line up financing for LNG Canada Phase 2 final investment decision through Export Development Canada (EDC), public sector pension funds, and more
First Nation consortium signs equity option agreement, opening the door to a potential $1bn investment in a major storage tank that would be part of LNGC Phase 2
Apollo Global Management Inc., also behind Ksi Lisims, reportedly the "front runner" in bidding for Shell and Mitsubishi's stakes in LNGC
Premier David Eby claims LNGC Phase 2 final investment decision will come in September
Vitreo Minerals sand mine near Prince George approved by BC EAO, will produce silica to supply to growing fracking industry in the northeast of the province

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Details

LNGC Phase 2 Final Investment Decision Updates

Export Development Canada and MidOcean Energy

Export Development Canada has provided two batches of financing to MidOcean Energy, an LNG investment vehicle originally formed by the US-based asset manager EIG and Saudi Aramco. Saudi ownership of MidOcean has since been diluted from half to about a quarter as a result of a major investment by the royal family of Abu Dhabi.

The first of these came on December 16th, when EDC gave MidOcean $2-300 million in financing. It is believed that this financing helped MidOcean close its deal to buy a 20% stake in PETRONAS Canada, including both its upstream assets in the Montney shale play and its stake in the already-existing LNG Canada Phase 1 project.

The second is dated April 22nd and included $3-400 million in financing. In an email seen by PRGT News, EDC claimed that this financing was not related to LNGC, though it certainly seems like it could be part of a round of funding that will contribute to a final investment decision for LNGC Phase 2.

EDC has listed LNGC Phase 2 as a "Category A project under consideration" since May 21st, but has refused to answer questions about what this listing refers to. It is possible, and perhaps even likely, that the listing relates to a transaction under consideration that hasn't happened yet, meaning EDC intends to make another large transaction to support LNGC Phase 2, whether through MidOcean or another company.

First Nations Consortium Signs "Equity Option" for LNGC Phase 2 Storage Tank

On July 14th, 2026, the Haisla, Gitxaała, Gitga’at, Kitselas and Kitsumkalum First Nations announced that they had signed an equity option agreement with the LNG Canada consortium that will allow them the opportunity to buy a majority stake in a large gas storage tank that would be part of LNG Canada's Phase 2 expansion for as much as $1 billion. Some media has reported this relatively clearly and accurately, but most of the reporting has failed to explain that this is not actually an equity stake, it is an option to buy an equity stake at a later date, which leaves big questions about where the financing that would underpin that purchase might come from. That is one of the two questions critical journalists should be asking about this announcement. The other is, is this a model that exists in any other LNG project globally—the ownership and lease of a single piece of infrastructure on the site of the otherwise massive, integrated project? If not, why not, and what do the revenue and risk outlooks look like here?

The cynical perspective on this announcement is that it is little more than a way of laundering additional public finance through First Nations-earmarked financial institutions and instruments into this massive privately owned project.

Apollo Global Management Inc. Leading Bids for Shell + Mitsubishi Stakes in LNG Canada

This news returned to the headlines this week although it appears there is little new information relative to the original reporting on this by Reuters from late April. Shell and Mitsubishi are reportedly seeking investors to buy their stakes in LNG Canada, or a portion of their stakes, and US-based private equity firms Apollo Global Management, Blackstone, and KKR are all interested. According to this week's reporting, Apollo is the most likely buyer at this point. Apollo and Blackstone are the two main investors in Western LNG, the Texas company behind the Ksi Lisims proposal. KKR owns a large stake in Coastal GasLink.

Eby Claims LNGC Phase 2 Final Investment Decision Will Come in September

Not much to add to the headline here. In a recent interview, BC Premier David Eby claimed that LNG Canada's final investment decision will come in September this year. This seems to align with the all-out push we are seeing by provincial and federal governments, and the timing also lines up with Prime Minister Carney's red-carpet investor soirée scheduled for September.

Pension Funds Expected to Invest in LNGC

Carney's government has been exerting an immense amount of pressure on our public sector pension funds to invest in LNG Canada. The pension funds have been relatively quiet about their plans, but there are reports that the pressure has worked and there is now a consortium of pension funds that will be announcing an investment in the project in the coming months.

Do you work at EDC or at one of Canada's public sector pension funds? We'd like to hear from you! Check out our Tips page and get in touch.

Vitreo Minerals Sand Mine Near Prince George Approved

The BC Environmental Assessment Office approved the Angus silica sand mine, owned by Vitreo Minerals Ltd., on July 13th. The mine will produce silica sand or "proppant" which is a key ingredient of frack fluid for gas production in the Montney. Currently, Montney producers import sand from a mine in Wisconsin, so this project will likely reduce costs for drillers in the Montney. You can read more background about the mine in The Narwhal.