LNG Canada has commenced operations at Canada’s first large-scale liquefied natural gas (LNG) export facility by loading its inaugural cargo destined for international markets.
This development positions Canada as a new player in the global LNG export sector.
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Located in Kitimat, British Columbia (BC), the facility is situated on the traditional territory of the Haisla Nation. It is designed to operate with an initial export capacity of 14 million tonnes per annum (mtpa) derived from two processing units.
LNG Canada is a joint collaboration between five international entities.
Shell holds a 40% stake through Shell Canada Energy while Petronas owns 25% through North Montney LNG and PetroChina controls 15% via PetroChina Canada. Other stakeholders include Mitsubishi with a 15% ownership through Diamond LNG Canada, and Korea Gas, which holds the remaining 5% through Kogas Canada LNG.
Canadian Prime Minister Mark Carney said: “With LNG Canada’s first shipment to Asia, Canada is exporting its energy to reliable partners, diversifying trade, and reducing global emissions — all in partnership with Indigenous Peoples.
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By GlobalData“By turning aspiration into action, Canada can become the world’s leading energy superpower with the strongest economy in the G7.”
The final investment decision for the LNG Canada project was made in October 2018. There are ongoing discussions among the joint venture partners about a potential Phase II expansion, which would double the plant’s capacity to 28mtpa by adding two more processing units.
Each partner will handle its own supply of natural gas and is responsible for marketing its respective share of LNG produced at the site. The project has engaged more than 50,000 Canadian workers and awarded contracts worth over C$5.8bn ($4.3bn) to local and Indigenous-owned businesses within BC.
Shell indicated that as Asian markets proceed with transitioning away from coal, LNG exports from Canada are poised to contribute significantly to global decarbonisation efforts.
The company noted that LNG serves as a lower-carbon alternative for electricity generation compared to coal and can complement intermittent renewable energy sources.
Furthermore, Shell stated that the LNG Canada project is expected to provide economic development opportunities in BC, offering a stable and reliable energy supply while maintaining partnerships with local communities and First Nations.
Shell integrated gas president Cederic Cremers said: “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.”
