LNG Canada produces first gas for export

Canada has produced its first LNG for export with the Shell-led LNG Canada set to begin shipping the super-chilled fuel this summer, Reuters reported on June 22.

Momentum has been building for the launch of Canada’s flagship LNG project, with the facility completing the cool down phase and testing of all the machinery at the plant in British Columbia in May.

The cool down process started on April 1 with the arrival of the Maran Gas Roxana tanker at the site’s location in the port town of Kitimat, about 700 km north of Vancouver .

When fully operational, LNG Canada will boast a production capacity of 14mn tonnes per year (tpy). Currently, super-cooled gas is being produced from the facility’s Train 1, which has a production capacity of 5.6mn tpy.

However, currently only part of the processing facility is operating with Train 1 experiencing difficulties with one line leaving it only producing about half of its capacity at the moment, sources familiar with the matter told Reuters.

LNG Canada is targeting the start of July for the facility’s first cargo to be shipped abroad. Ship tracking data from the London Stock Exchange Group (LSEG) shows that the LNG vessel Gaslog Glasgow is enroute to the terminal and is expected to arrive on June 29 at which time it will be loaded with LNG cargoes.

LNG Canada boasts an ideal location with a direct shipping route to energy thirsty markets in northeast Asia and will benefit from first-mover status as the first LNG project to ship cargoes on the Pacific coast.

The project’s launch in July comes at a time when Canada finds itself grappling with turbulent trade relations with its biggest partner the US.

Canada exported approximately 8.6bn cubic feet (243mn cubic metres) per day of gas via pipelines to its southern neighbour in 2024.

However, with trade relations with the US turning sour, Canada is looking to strengthen trade partnerships with other countries and protect its sovereignty.

In addition to shipping LNG to buyers in Asia via export terminals on its west coast, the country is also considering shipping to European partners via a proposed saltwater port on Hudson Bay.