Reuters: Canada may produce its first LNG this week from its Kitimat site

Reuters is reporting that Canada might produce its first LNG this week (liquefied natural gas) from the LNG Canada site in Kitimat.

A summary of the site:

LNG Canada, located in Kitimat, British Columbia, is Canada’s largest and most advanced LNG export project. Led by Shell and backed by partners including PetroChina, Petronas, Mitsubishi, and KOGAS, the $40 billion project is designed to export Canadian natural gas to Asia. The facility will initially feature two liquefaction trains capable of producing 14 million tonnes per year, with future expansion potential.

Strategically positioned on Canada’s west coast, LNG Canada offers a shorter shipping route to Asian markets compared to Gulf Coast U.S. terminals. Its competitive advantage also lies in using hydroelectric power, making it one of the lowest carbon intensity LNG facilities globally.

Construction began in 2019, and first exports are expected by mid-2025. Natural gas will be delivered to the terminal via the Coastal GasLink pipeline, which connects to gas fields in northeastern British Columbia. The project is seen as a long-term economic driver for the region, with significant employment and partnership opportunities for local and First Nations communities.

Despite some environmental opposition, LNG Canada is a cornerstone of Canada’s strategy to become a global player in LNG, offering Asian buyers a stable and lower-emission supply alternative amid global energy security concerns.