Canada has shipped its first liquefied natural gas (LNG) cargo from the LNG Canada facility in Kitimat, British Columbia, and en rout to South Korea.
“LNG Canada grows our leading integrated gas portfolio, providing a reliable supply of LNG to markets, most notably in Asia,” said Cederic Cremers, Shell’s President of Integrated Gas.
Though the LNG shipment amount was not specified, the facility is producing 14 million tons per year (mtpa) of LNG in its first phase, with plans to double capacity in a second phase.
LNG Canada is billed as the largest private-sector investment in Canadian history, with investments worth $29.4 billion. It is a joint venture between Shell Plc (operator), Petronas, PetroChina, Mitsubishi Corp, and Korea Gas Cooperation.
As it started commercial production in early 2025, the project enables Canada to diversify its LNG exports reducing its reliance on US markets and export to global markets primarily Asia.
“We expect that supplying LNG will be the biggest contribution Shell makes to the energy transition over the next decade, and projects like LNG Canada position our portfolio to achieve this,” said Cremers.
Shell foresees global demand for LNG to rise by around 60% by 2040, largely driven by economic growth in Asia.
