LNG Canada has started producing liquefied natural gas for export at its British Columbia facility, marking Canada’s debut in the global LNG market, according to sources familiar with the project.
The Shell-operated facility began production at 4 a.m. local time Sunday, representing the country’s first major LNG export terminal with Pacific Ocean access.
“At 4 a.m. local time LNG Canada started producing its first LNG,” a source told Reuters.
The Kitimat terminal is designed to export 14 million tonnes of LNG annually when both processing trains are operational, though it’s currently running at reduced capacity due to technical difficulties. Only one train is producing gas.
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LNG Canada expects to ship its first cargo by early July. The LNG carrier GasLog Glasgow is en route to the terminal and scheduled to arrive June 29, with Petronas’ Puteri Sejinjang vessel expected July 6.
The development marks a shift for Canadian energy exports, which have historically moved to the United States through pipelines. The west coast location cuts delivery times to Asian customers.
Project partners include operator Shell, Malaysia’s Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas Corp. The $40 billion project represents one of Canada’s largest energy investments.
Shell CEO Wael Sawan said last week the maiden cargo shipment remained on schedule for mid-2025.
The facility processes natural gas from northeastern British Columbia. Current production capacity from the first train is 5.6 million tonnes per year, with the second train expected to bring total capacity to 14 million tonnes annually.
Weekend operations included intermittent flaring as part of commissioning and startup activities, the company said.
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