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New Energy World™
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LNG Canada has successfully loaded a first cargo of LNG, marking the start of operations at Canada’s first large-scale LNG export facility, and opening a critical gateway to the Asian market.
Located in Kitimat, British Columbia, in the traditional territory of the Haisla Nation, the project will initially export LNG from two liquefaction units or ‘trains’ with a total capacity of 14mn t/y.
The first cargo is being carried on the GasLog Glasgow operating under charter to Shell, and is reported to be bound for Incheon, South Korea, where it is scheduled to arrive on 20 July.
The new facility is the first in North America with direct access to the Pacific Coast, significantly reducing sail time to Asian markets when compared with US Gulf coast facilities. It has a 40-year export licence.
LNG Canada is a joint venture company comprised of Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi Corporation (15%) and Korea Gas Corporation (5%). Each partner will provide its own natural gas supply and individually offtake and market their respective share of LNG from LNG Canada.
Over the span of construction, more than 50,000 Canadians directly contributed to building LNG Canada Phase 1, whilst the connecting 670 km (420 miles) Coastal GasLink pipeline from Dawson Creek employed more than 25,000. The project was reported to cost C$40bn ($29.3bn).
LNG Canada continues to explore pathways for a potential Phase 2 expansion, which could include the construction of two additional LNG trains, resulting in a total plant capacity of 28mn t/y.
Canada has two other smaller LNG export facilities also under construction on the Pacific Coast. The facilities – Woodfibre LNG and Cedar LNG – are expected to be completed between 2027 and 2028.