LNG Canada produces first LNG at plant for export.

LNG Canada produces first LNG at plant for export.

LNG Canada, a joint venture between Shell Plc, Petronas, PetroChina, Mitsubishi Corporation, and Kogas, has achieved a significant milestone by producing its first liquefied natural gas (LNG) for export. The facility, located in Kitimat, British Columbia, began operations on June 19, 2025, with the initial production coming from Train 1, which has a capacity of 5.6 million metric tonnes per annum (mtpa) [1].

The LNG Canada project is the first large-scale Canadian LNG facility to start production and the first major North American facility with direct access to the Pacific coast. This strategic location significantly reduces the sail time to Asian markets, making it a competitive option for LNG exports. Once fully operational, the facility is expected to have a total capacity of 14 million mtpa [1].

The first LNG cargo is anticipated to be shipped by the beginning of July, with the LNG tanker Gaslog Glasgow approaching the Kitimat port on June 29 [1]. However, it is important to note that only a portion of the processing plant is currently operational, with Train 1 producing at half its capacity due to technical difficulties with one of its lines [1].

The production of LNG at the Kitimat facility is expected to have implications for Canadian gas exports. Traders suggest that Canadian gas exports to the U.S. may decline as Canadian energy firms gain another outlet for their fuel [1]. Canada currently exports approximately 8.6 billion cubic feet per day of gas via pipelines to the U.S., a significant portion of its total gas production [1].

The LNG Canada project is part of a broader trend in the global LNG market, where countries are seeking to diversify their energy exports and reduce reliance on traditional markets. South Korea's Daewoo Engineering & Construction, for instance, has been actively involved in LNG projects in Africa, including a recent visit by its chair, Jung Won-ju, to Mozambique to discuss cooperation on LNG plant projects [2].

References:
[1] https://www.marketscreener.com/quote/index/S-P-GSCI-NATURAL-GAS-INDE-46869167/news/LNG-Canada-produces-first-liquefied-natural-gas-for-export-sources-say-50303142/
[2] https://www.koreaherald.com/article/10513435