The approval follows completion of 30 months of review by stakeholders and regulators for the project located in the Cold Lake area of eastern Alberta, Canada.
Upon completion, the second phase will bring the total capacity from Lindbergh of 30,000 bbl per day at a steam oil ratio (SOR) of 3.6.
Pengrowth president and CEO Derek Evans said: "We are delighted to have received final regulatory approval for the second commercial phase at Lindbergh, which, to date, has been among the best performing thermal bitumen projects in western Canada.
"This expansion will be part of our transition to building a portfolio of highly economic thermal oil assets with low SORs, low declines, low sustaining capital and strong capital efficiencies. The hallmarks of long-term sustainability."
Pengrowth expects the project to offer the potential to increase annual production to 40,000 to 50,000 bbl per day.
The first commercial phase of the project has 12,500 bbl per day capacity and was commissioned in 2015.
Production from the first commercial phase has been increased averaging 15,256 bbl per day in the first quarter of 2016 at an average SOR of 2.3.
Pengrowth is due to finalize the capital cost estimates and commitments for the second phase.
