Shell hints at start-up of second train at LNG Canada before end of year

Supermajor Shell forecasts that the second liquefaction train at LNG Canada will come online before the end of the year, the company’s Chief Financial Officer Sinead Gorman stated on October 30, Reuters reported.

Shell is the project lead on Canada’s flagship LNG facility, which loaded its first cargo to send to Japan in late June.

“It will not be a quick move on that one, that will take time,” Gorman told the media on a  third-quarter earnings call.

Earlier in October, Shell hinted that the project was preparing for start-up of the second liquefaction unit

The announcement comes as the project struggled with production operations, with at least one cargo delivery being required to be cancelled.

In September, supply fell with the new facility delivering only four cargoes and just 0.3mn tonnes of the super-cooled gas. It marked a downturn from August, when 0.3mn tonnes of LNG were shipped.

So far, at least 13 cargoes have been shipped from the facility located at Kitimat, British Columbia to partners in South Korea, Japan and Malaysia.

Train 2 at the facility will possess the same production capacity of Train 1 of 6.5mn tonnes per year (tpy).

The setback in production operations mark a shift for the project, which had previously encountered smooth sailing during the construction phase, even coming online slightly ahead of schedule.

Prior to launching LNG Canada, the country previously sent all of its gas to the US, exporting about 8.6bn cubic feet (240mn cubic metres) per day of gas to its southern neighbour in 2024 via pipeline.

LNG Canada is a joint venture between lead partner Shell with a 40% stake as well as Malaysia’s Petronas with a 25% holding, PetroChina with a 15% interest, Japan’s Mitsubishi Corporation also with a 15% stake, and South Korea’s Kogas with a 5% interest.