Shell-Led LNG Canada Begins First Production in British Columbia

The Shell-led LNG Canada facility in Kitimat, British Columbia, has commenced production of liquefied natural gas (LNG), marking a milestone as the first major North American LNG plant with direct Pacific access. Currently, only Train 1 with a capacity of 5.6 million tonnes per annum is operational, but it is running at half capacity due to a technical issue, though export schedules remain on track for mid-year. The terminal, a $40 billion joint venture including Shell, Petronas, PetroChina, Mitsubishi, and Kogas, is expected to reach a full export capacity of 14 million tonnes per annum, providing Canada with a new international market beyond the United States. The LNG tanker Gaslog Glasgow is scheduled to arrive at Kitimat to load the first export shipment. This facility is anticipated to shift some Canadian natural gas exports from the U.S. to Asian markets, reducing transit times compared to U.S. Gulf Coast terminals. Additionally, two smaller LNG projects, Woodfibre LNG and Cedar LNG, are underway on the Canadian Pacific coast, with completion expected between 2027 and 2028.