Regional LNG: LNG Canada produces first liquefied natural gas for export
Monday, June 23 2025 - 07:50 AM WIB
LNG Canada, the Shell-led liquefied natural gas facility in Kitimat, British Columbia, has produced its first LNG for export, a project spokesperson confirmed on Sunday, according to Reuters.
This milestone precedes the loading of the facility’s first export cargo, which LNG Canada said remains on track for mid-2025.
The project marks a major development: it is Canada’s first large-scale LNG export facility to begin production and the first major LNG terminal in North America with direct access to the Pacific Ocean. This location offers a significant logistical advantage, shortening shipping times to Asian markets compared to facilities on the U.S. Gulf Coast.
Once fully operational, the facility will have a production capacity of 14 million metric tonnes per annum (mtpa), according to company statements.
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Two sources familiar with the startup told Reuters that LNG production began at 4:00 a.m. local time from Train 1, which has a nameplate capacity of 5.6 mtpa. However, only a portion of the plant is currently running. One of the sources noted that Train 1 is facing technical issues with one of its processing lines and will operate at half capacity until the issue is resolved.
Shipping data from LSEG shows the LNG tanker GasLog Glasgow en route to Kitimat, with an expected arrival date of June 29. According to the sources, the vessel will be loaded with LNG from the facility.
LNG Canada is a joint venture between Shell plc, Petronas, PetroChina, Mitsubishi Corporation, and Kogas.
Industry analysts expect that once LNG Canada begins full operations, Canadian natural gas exports to the U.S. will likely decline, as producers gain direct access to global markets. Currently, the U.S. is the only major export destination for Canadian natural gas.
In addition to LNG Canada, two smaller LNG projects are also under construction on Canada’s Pacific coast: Woodfibre LNG and Cedar LNG, both expected to be completed between 2027 and 2028.
In 2024, Canada exported approximately 8.6 billion cubic feet per day (bcfd) of gas to the U.S. via pipelines—up from 8.0 bcfd in 2023, and an average of 7.5 bcfd over the five years from 2018 to 2022, according to data from the U.S. Energy Information Administration. That compares to a peak of 10.4 bcfd in 2002.
Editing by Reiner Simanjuntak