Fluor-JGC JV Selected for LNG Canada Phase 2 Expansion Project
Fluor Corporation FLR has strengthened its position in the global liquefied natural gas market after its joint venture with JGC Corporation was selected to deliver the second phase of the LNG Canada export facility in Kitimat, British Columbia. The award follows LNG Canada’s final investment decision and advances a project that had been moving through early planning under a limited notice to proceed since June 2026.
Following the investment decision, the JGC-Fluor joint venture received a notice to proceed covering engineering, procurement, fabrication, construction and commissioning for Phase 2. Fluor expects to recognize its $7.5 billion share of the multibillion-dollar contract in the third quarter of fiscal 2026.
Following the news, Fluor’s shares gained 1.2% during trading hours yesterday.
Fluor’s Scope of Work on LNG Canada Phase 2
Phase 2 will be built adjacent to the existing LNG Canada facility and will involve the construction and commissioning of an additional LNG storage tank and two new liquefaction units, or trains. Once completed, the expansion is expected to double the facility’s production capacity to approximately 28 million tonnes per year while increasing LNG processing, storage and shipping capabilities.
The project also extends Fluor and JGC’s involvement with LNG Canada beyond the first phase. The joint venture delivered Phase 1, including engineering, procurement, fabrication management, construction and commissioning of two processing trains and supporting infrastructure. LNG production began in June 2025, with facility handover completed in October 2025. This experience should provide the partners with familiarity across the site, project requirements and execution environment as work on the expansion ramps up.
The Phase 2 project will be executed by JGC Fluor BC LNG II JV, a Canadian joint venture owned equally by Fluor Canada Ltd. and JGC Constructors (No. 2) BC Ltd. LNG Canada is backed by Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS.
LNG Canada Award Bolsters Fluor’s Energy Pipeline
The full Phase 2 award represents an important conversion of Fluor’s front-end pipeline into a major execution project. During the second quarter, management identified LNG Canada Phase 2 as a key Energy Solutions opportunity, with the initial limited notice allowing early planning and other activities to proceed while the client evaluated the final investment decision.
Fluor entered the second half of 2026 with strong award momentum, reporting $6.1 billion in second-quarter new awards and $26.9 billion in backlog, while expecting a full-year new-awards book-to-burn ratio well above 1. The award also supports Fluor’s efforts to reload its Energy Solutions portfolio following several large project completions. Management expects recent front-end work across LNG, gas-fired power, oil sands, refining and nuclear to drive the next wave of EPC activity.
FLR stock has gained 6.8% in the past six months compared with the Zacks Engineering - R and D Services industry’s 2.9% growth. While Fluor faces project-execution and geopolitical risks, its strategy remains focused on converting front-end work into EPC awards across LNG, power, nuclear, refining, mining and data centers. Strong recent awards and a healthy pipeline support longer-term backlog and earnings visibility.
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FLR’s Zacks Rank & Other Key Picks
Currently, Fluor flaunts a Zacks Rank #1 (Strong Buy).
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The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 53.4%, respectively, from the prior-year levels.
Comfort Systems USA, Inc. FIX carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 34.6%, on average. FIX stock has surged 76.5% year to date.
The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 42.1% and 65%, respectively, from the prior-year levels.
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