LNG Canada produces first liquefied natural gas for export
A Shell-led LNG Canada facility in Kitimat has produced the first liquefied gas for export, confirmed a project spokesperson on Sunday.
This milestone is in anticipation of LNG Canada loading its first LNG cargo at the facility, which it said will be done by the middle this year.
It is also the first major LNG plant in North America to have direct access to the Pacific Coast, thereby reducing the sailing time to Asian markets compared to U.S. Gulf Coast facilities.
According to the company, when fully operational, it will be able to export 14 millions metric tons per year (mtpa).
Two people who are familiar with the startup told us that the plant began producing LNG around 4 am local time. According to the people, the super-chilled LNG is produced by Train 1 of the facility. It has a capacity 5.6 mtpa.
According to two sources, only a part of the plant is operational. Train 1 is experiencing problems with one of its production lines, and will only be able to produce at half capacity until the issue is resolved.
LSEG's ship tracking data shows that the LNG tanker Gaslog Glasgow has approached LNG Canada's Kitimat Port. Sources say that the vessel will arrive on June 29, and be loaded with LNG.
The LNG Canada Project is a joint-venture between Shell Plc, Petronas, PetroChina, Mitsubishi Corporation, and Kogas.
Traders said that once the facility is operational, Canadian gas exports will likely decrease, since Canadian energy companies will have an alternative outlet for their fuel. As of now, Canada's gas is only available in the U.S.
Two smaller LNG export facilities are also being constructed in Canada on the Pacific Coast. Woodfibre LNG, and Cedar LNG are expected to complete their construction between 2027-2028.
According to U.S. Energy Information Administration data, Canada will export about 8.6 billion cubic foot per day (bcfd), up from 8.0 bcfd a year ago and an average of 7.5 bcfd for the five previous years (2018-2022). This compares to a record of 10.4 bcfd set in 2002. Reporting by Curtis Williams, in Houston; and Amanda Stephenson, in Calgary. Editing by Nia Williams & Chris Reese.
(source: Reuters)
