LNG Canada Begins Operations with First Cargo of LNG

LNG Canada has officially started operations by loading its first cargo of liquefied natural gas, marking a significant milestone for Canada’s first large-scale LNG export facility. The facility, located in Kitimat, British Columbia, will export LNG from two processing units with a total capacity of 14 million tonnes per annum (mtpa).

Joint Venture Partners

Shell Canada Energy, a subsidiary of Shell, holds the largest working interest in the LNG Canada joint venture with a 40% stake. Other partners include Petronas (25%), PetroChina Company (15%), Mitsubishi Corporation (15%), and Korea Gas Corporation (5%). The joint venture is operated through LNG Canada Development.

Supply and Offtake Agreements

Each joint venture participant will provide its own natural gas supply and market their share of LNG from the project. All LNG produced at the facility will be provided to Shell and the other joint venture partners. The project also includes an option for a Phase 2 expansion, which could increase total capacity to 28 mtpa with the construction of two additional LNG trains.

Shell’s Commitment to LNG

Cederic Cremers, Shell’s President of Integrated Gas, highlighted the importance of projects like LNG Canada in the company’s portfolio. He stated, “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.”

With the successful loading of the first cargo, LNG Canada is poised to become a key player in the global LNG market, contributing to Canada’s energy exports and meeting the growing demand for cleaner energy sources worldwide.