By Christie U. Omonigho with agency report
The Shell-led LNG Canada facility has produced its first liquefied natural gas for export in Kitimat, British Columbia, a spokesperson for the project was reported to have confirmed this on Sunday.
Energy Window International (Media) had gathered from EnergyNow Canada that the great achievement was coming ahead of the facility’s engagement with its first LNG export cargo which LNG Canada has already assured would be executed by the middle of the year.
“At 4 a.m. local time LNG Canada started producing its first LNG”
EnergyNow reported that the facility was the first large-scale Canadian LNG project to begin production and also the first major facility in North America with direct access to the Pacific coast, believing that the engagement would significantly reduce sail time to Asian markets.
Energy Window International (Media) also gathered that it would have a capacity to export 14 million metric tonnes per annum (mtpa) when it is fully operational. On this, “LNG Canada did not immediately respond to a request for comment,” according to EnergyNow Media.
“The super-chilled gas is being produced from the facility’s Train 1, which has capacity of 5.6 mtpa, and the first LNG cargo is expected to be shipped by the beginning of July,” two sources were reported to have said.
“Only a portion of the processing plant is operating,” reporting both sources. “Train 1 has had difficulties with one of its lines and will only produce at half its capacity until the problem is solved,” reporting one of the sources as saying this time.
EnergyNow also reported LSEG ship tracking data as showing that the LNG tanker Gaslog Glasgow was already approaching LNG Canada’s Kitimat port, with the expectation that the vessel would certainly arrive on June 29 for loading.
The LNG Canada project Energy Window International (Media) learnt is a joint venture between Shell Plc, Petronas, PetroChina, Mitsubishi Corporation and Kogas.
“Once the facility enters service, Canadian gas exports to the U.S. will likely decline, traders were reported to have said, as Canadian energy firms will have another outlet for their fuel. For now, the US is the only outlet for Canadian gas.”
EnergyNow quoted data from US EIA as saying that Canada exported about 8.6 billion cubic feet per day of gas via pipelines to the US in 2024, up from 8.0 bcfd in 2023 and an average of 7.5 bcfd over the prior five years (2018-2022). And “that compares with a record 10.4 bcfd in 2002.”