Shell said that it has “achieved a key milestone by shipping the first cargo from LNG Canada”, supporting its “ambition to achieve LNG sales cumulative annual growth rate of 4 - 5% to 2030.”

 

According to the Global LNG Database®, the Canadian 14 MMT/Y LNG export facility located in Kitimat, British Columbia exported its first LNG cargo on 30-June.
Stakeholders of the LNG Canada Development are Shell (operator - 40%); Petronas (25%); PetroChina (15%); Mitsubishi (15%); and Kogas (5%).

 

The project also includes an option for a future Phase 2 expansion, which could include the construction of two additional LNG trains, bringing total capacity to 28 MMT/Y.

 

LNG Canada mainly targeted the Asian LNG market, where the transition from coal to LNG is developing as a lower-carbon alternative in electricity generation and a partner for intermittent renewables.

 

Shell CEO, Wael Sawan has recently highlighted the competitive advantage of LNG Canada over the US LNG projects due to its use of the AECO price index for LNG pricing, which is significantly lower than the Henry Hub gas price in the US.
This price difference, coupled with its strategic location on Canada’s Pacific Coast “connects cost-competitive upstream gas from British Columbia to growing Asian demand”, making “LNG Canada an attractive and cost-effective source of LNG.”

 

The major has forecasted that global demand for LNG is set to rise by around 60% by 2040, largely driven by economic growth in Asia.

 

You can access the perfect information about the world’s LNG import/export projects such as “LNG Canada project” by subscribing to the Global LNG Database®.

 

 

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