LNG Canada Produces First Liquefied Natural Gas for Export

The Shell-led LNG Canada project has reached a major milestone, having produced its first liquefied natural gas for export. The project is expected to load this first cargo imminently.

The project - which is led by Shell and also includes PETRONAS, PetroChina, Mitsubishi Corporation, and KOGAS - is the first large scale LNG facility in Canada to begin production. 

Plus, due to its strategic location in Kitimat, British Columbia, LNG Canada is the first major LNG project that has direct access to the Pacific coast - which will significantly reduce sail time to Asian markets compared to existing U.S. Gulf Coast facilities. 

Once fully operational, it is expected that LNG Canada will have a nameplate capacity of 14 million metric tons per annum (mtpa). With a 40-year export licence, LNG Canada will be able to take advantage of British Columbia’s enormous natural gas reserves (the second largest in Canada). 

Ultimately, Shell and its partners have stated that the project will: 

• Provide security of supply for global markets that rely on Canada’s gas reserves to fuel their economies. 
• Reduce global GHG emissions as natural gas replaces the use of coal. 
• Bring significant economic growth and stability to northern British Columbia communities and all of Canada. 

Two people familiar with the project spoke to news agency Reuters and said that production of the first batch of LNG began at 4am, with the super-chilled gas being produced from LNG Canada’s Train 1 - which has a capacity of 5.6 mpta.

According to ship tracking data, the LNG tanker Gaslog Glasgow is currently en-route to LNG Canada’s port and will be loaded with the first export cargo on arrival. 

At the time of writing, Canada has two other LNG facilities under construction: Woodfibre LNG and Cedar LNG, which are expected to be completed by 2027 and 2028 respectively. 

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