Canada could produce its first-ever liquefied natural gas (LNG) for export from the Pacific coast as early as this weekend, according to industry sources familiar with project timelines cited by Reuters.
LNG Canada, a massive $40-billion project in Kitimat, British Columbia, is completing cooldown operations on Train 1, which are scheduled from June 16 to 19.
If production begins as expected, it would mark a milestone for Canada’s natural gas industry: the country’s first operational LNG export terminal and the only one on North America’s Pacific coast. Initial output is expected to begin at half-capacity, with the first cargo slated for mid-July aboard the Gaslog Glasgow.
The project’s advantage lies in its economics and geography. Shell CEO Wael Sawan recently cited Canada’s AECO gas benchmark, currently around $0.71 per MMBtu, versus $3.75 at Henry Hub, as a cost advantage. Proximity to Asian markets adds to its appeal, with key destinations reachable in under two weeks.
Backed by Shell, Petronas, PetroChina, Mitsubishi, and Kogas, LNG Canada will eventually ramp up to 14 million tonnes per annum (mtpa). That capacity is expected to redirect a portion of Canadian gas exports—currently flowing almost entirely to the U.S.—toward global markets.
This development comes amid stalled U.S. LNG permitting and accelerating investment in Mexico, positioning Canada as a new Pacific LNG player.
While not yet confirmed, a weekend startup would mark the start of Canada’s long-delayed entry into global LNG—a move that could shift North American export patterns and bolster supply diversity for Asia.
By Charles Kennedy for Oilprice.com
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