Korea Gas (KRX:036460) will provide a cash loan of 707.2 billion won to its subsidiary, KOGAS Canada Energy, to fund its share of the LNG Canada Phase 2 expansion project, according to a Wednesday bourse filing.

The loan will take effect on Oct. 1, 2026, and run through Dec. 31, 2032, carrying an annual interest rate of 4.60%.

The borrowing will fund the expansion project, following the unanimous approval of the Final Investment Decision (FID) by all participating parties.

The total investment cost for KOGAS's share in the project is estimated at $1.26 billion. The company is committed to providing $581 million, of which $61 million has already been deployed. The remaining $520 million will be covered by the newly announced loan following the FID.

The Phase 2 Project will add two LNG liquefaction trains at the existing Kitimat facility, increasing capacity from 14 to 28 mtpa, and construct five new compressor stations along the Coastal GasLink pipeline, securing KOGAS an additional equity volume of 700,000 tonnes.