LNG Canada loads historic first LNG export cargo from Kitimat

GasLog Glasgow, owned by Greek shipowner GasLog led by Peter Livanos, departed LNG Canada on Canada Day (1 July) and is now signalling a course to Incheon, South Korea, according to the ICIS platform. 

ICIS senior LNG analyst Alex Froley noted in a social media post that while Canada has previously exported small-scale LNG – shipping small volumes to Asia in ISO containers – it had never before exported any “normal size” LNG cargoes.

According to Mr Froley, at least four other vessels have already signalled their course to Canada to load subsequent cargoes, indicating a relatively steady production rate is expected to continue.

Shell holds the largest working interest in LNG Canada, with a 40% stake. The facility will export LNG from two processing units, or ’trains,’ with a combined capacity of 14M tonnes per annum (mta). Other joint venture partners include Petronas (25%), PetroChina (15%), Mitsubishi Corp (15%), and Korea Gas Corp (5%), each participating through subsidiaries.

The project also includes an option for a future Phase 2 expansion, which could add two more LNG trains, doubling the total capacity to 28 mta.

Shell highlighted that as Asian markets transition away from coal, LNG Canada’s exports are well positioned to play a crucial role in global decarbonisation efforts. LNG is a lower-carbon alternative to coal for electricity generation and complements intermittent renewables, the company said in an official statement.

Potential energy superpower

“By turning aspiration into action, Canada can become the world’s leading energy superpower with the strongest economy in the G7,” said Canada’s Prime Minister, Mark Carney.

“We’re proud to be part of the effort to help Canada diversify its export markets and deliver lower-carbon energy to the world for many decades to come,” said LNG Canada president and chief executive Chris Cooper.

“LNG Canada is a testament to how responsible energy development can create lasting, positive impacts for local communities and First Nations while delivering essential energy to the world,” emphasised Shell president for integrated gas, Cederic Cremers.

“This milestone is the result of years of perseverance to realise our vision for Canadian LNG exports to the Asia-Pacific region,” added Petronas executive vice president and chief executive of gas and maritime business, Adif Zulkifli.

“This remarkable achievement will contribute not only to the further development of the local economy but also to the long-term employment landscape, making it a significant driver of the Canadian economy,” said Mitsubishi Corp’s Masaru Saito.

“The production of LNG Canada represents the culmination of world-class technological integration and a new chapter in global energy collaboration,” stated PetroChina Canada president and chief executive Zhiyong Liu.

“We are confident LNG Canada will demonstrate the highest standards of safety, reliability and competitiveness,” noted KOGAS president and chief executive Yeonhye Choi.