LNG Canada ships its first export cargo from facility in Kitimat, British Columbia

LNG Canada ships its first export cargo from facility in Kitimat, British Columbia

LNG Canada, a joint venture project led by Shell plc (SHEL), has officially entered the global LNG export market with its facility in Kitimat, British Columbia. The facility produced its first batch of liquefied natural gas (LNG) and is on schedule to load its first export cargo by mid-2025 [1].

The LNG Canada project, comprising Shell (40%), Malaysia’s Petronas (25%), Mitsubishi Corporation (15%), PetroChina (15%), and Korea Gas Corporation (5%), is a significant milestone for Canada's energy ambitions. The facility is the first large-scale LNG project in Canada to begin production and the first major LNG facility in North America with direct access to the Pacific Coast, offering a faster shipping route to Asia’s markets compared with terminals on the U.S. Gulf Coast [1].

With the Gaslog Glasgow tanker approaching Kitimat for its maiden LNG load, Canada is poised to diversify its natural gas exports away from the United States, its sole international customer. This shift is expected to impact the U.S. market, which currently receives around 8.6 billion cubic feet per day of Canadian natural gas [1]. Two additional projects, Woodfibre LNG and Cedar LNG, are also under construction, aiming for completion between 2027 and 2028, further strengthening Canada’s LNG export capabilities.

Shell, one of the primary oil supermajors, currently holds a Zacks Rank #3 (Hold). Investors interested in the energy sector might consider other stocks with higher rankings, such as BKV Corporation (BKV), Subsea 7 S.A. (SUBCY), and Oceaneering International, Inc. (OII), which have Zacks Ranks #1 (Strong Buy) and #2 (Buy), respectively [2].

References:
[1] https://sg.finance.yahoo.com/news/shell-led-lng-canada-begins-114100655.html
[2] https://www.zacks.com/