By Christie U. Omonigho
According to EnergyNow:
- Process to materialize the actualization of Shell-led LNG Train 2 has begun the current technical problems with Train 1 notwithstanding
- Exports ongoing and flaring on Sept 11 ended
- Exports fall in September, data show
- Natgas prices hit record lows amid slow ramp-up of LNG Canada
Energy Window International (Media) has gathered that Shell-led (SHEL.L) LNG Canada has begun the process of starting up its second 6.5 million tonnes per annum (mtpa) liquefied natural gas processing unit known as Train 2 in Kitimat, British Columbia, a company spokesperson was reported to have told Reuters.
The startup of Train 2 according to EnergNow is happening as the company continues to experience technical problems at Train 1. Energy Window International (Media) gathered that the train was in July challenged by a number of technical issues following take-0ff of its first production.
LNG Canada according to the news sources was the first major LNG export facility in Canada, and the first on the west coast of North America that provides direct access to Asia which hitherto is the world’s largest LNG market.
The facility Energy Window International (Media) has learnt, took almost seven years to be built and has been operating at less than half its stated capacity.
“We have had to swap out the supercore, and while string 2 is running, string 1 is down,” a source was reported to have told Reuters.
Asked about the technical issues, the company spokesperson was also reported to have rather pointed to ongoing export activity at the terminal and said flaring that started on September 11 had already ended.
“A 14th cargo departed the LNG Canada facility on September 30. A 15th cargo is expected to depart in the coming days,” the spokesperson said.
“In September, LNG Canada exported less of the superchilled gas than the month before, with only four cargoes leaving the port for a total export of just under 0.3 million metric tons compared with the 0.4 million tons it sold in August”, source reported preliminary ship tracking data from financial firm LSEG to have shown.
“When fully operational, the facility is expected to convert about 2 billion cubic feet of gas per day (bcfd) to LNG, which market participants have hoped will boost Canadian natural gas prices. The slow ramp-up of LNG Canada, however, has contributed to daily spot prices slumping to record lows last week, as it has failed so far to drain a gas glut that built in anticipation of increasing demand from the plant, causing pipeline congestion”.
“Gas storage in Western Canada remains at last year’s record highs”, reporting investment bank Jefferies, while also reporting Reuters as saying last week that some gas producers were already and aggressively cutting output in an effort to ease an ongoing glut.
Energy Window International (Media) gathers that LNG Canada is a joint venture between Shell, Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corp, and South Korea’s KOGAS.
Adding that even MidOcean, an LNG company backed by EIG and Saudi Aramco, had a few days ago announced a plan to buy a fifth of the Petronas venture that holds a 25% share of LNG Canada.