LNG Canada, led by Shell, has announced the production of the first liquefied natural gas (LNG) for export from its facility in Kitimat, British Columbia.

This achievement precedes the anticipated loading of its first LNG export cargo, which the company expects to accomplish by mid-year.

The facility, when fully operational, will boast an export capacity of 14 million tonnes per annum (mtpa).

Sources familiar with the plant's start-up reported to Reuters that LNG production commenced at 4am local time.

The production is currently coming from Train 1, which has a capacity of 5.6mtpa.

However, the plant is not yet fully operational, with only a portion of the processing plant active due to difficulties with one of its lines, leading to a temporary reduction in capacity.

The LNG tanker Gaslog Glasgow is on course for LNG Canada's Kitimat port, with LSEG ship tracking data indicating an expected arrival on 29 June.

The vessel is set to be loaded with LNG, according to the sources.

The LNG Canada project is a joint venture (JV) involving Shell, Petronas, PetroChina, Mitsubishi and Kogas.

The initiation of services at the LNG Canada facility is expected to redirect Canadian gas exports as Canadian energy companies will gain an alternative market for their fuel.

This shift may result in a decrease in Canadian gas exports to the US, a significant customer.

Additionally, two other smaller LNG export facilities, Woodfibre LNG and Cedar LNG, are under construction on Canada's Pacific coast, with completion dates projected between 2027 and 2028.

Canada's gas exports to the US have been on the rise, reaching approximately 8.6 billion cubic feet per day (bcf/d) in 2024, an increase from 8bcf/d in 2023, and higher than the 7.5bcf/d average over the previous five years, as per US Energy Information Administration data.