Canada Joins LNG Export Nations as First Cargo Sets Sail

(Credit: LNG Canada)

LNG Canada has loaded the first cargo of liquefied natural gas that is now destined for global markets, marking the start of operations at Canada’s first large-scale LNG export facility.

Located in Kitimat, British Columbia, the LNG Canada facility will export LNG from two processing units or trains with total capacity of 14 million tonnes per annum (mtpa).

Shell Canada Energy, an affiliate of Shell, has the largest working interest in the LNG Canada joint venture, holding 40%, with other partners including Petronas, through its wholly owned subsidiary North Montney LNG with 25% share, PetroChina Company, through its subsidiary PetroChina Canada (15%), Mitsubishi Corporation, through its subsidiary Diamond LNG Canada (15%), and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG (5%).

The joint venture is operated through LNG Canada Development.

Each LNG Canada joint venture participant will provide its own natural gas supply and individually offtake and market their respective share of LNG from the project.

All LNG produced at the facility will be provided to Shell and the other joint venture participants.

The project includes an option for a future Phase 2 expansion, which could include the construction of two additional LNG trains, bringing total capacity to 28 million tonnes per annum (mtpa).

"LNG Canada grows our leading integrated gas portfolio, providing a reliable supply of LNG to markets, most notably in Asia. We expect that supplying LNG will be the biggest contribution Shell will make to the energy transition over the next decade, and projects like LNG Canada position our portfolio to achieve this,” said Cederic Cremers, Shell’s President, Integrated Gas.