Shell Plc’s liquefied natural gas project in Canada, the country’s first large-scale export terminal for the fuel, is preparing to begin overseas sales as soon as late June.
The facility is testing equipment ahead of the start of LNG production according to people with knowledge of the situation who asked not to be identified as the details are private. The export plans could change depending on the rate of progress at the project, the people said.
The project remain on track to load first cargoes by the middle of 2025, an LNG Canada spokesperson said by email.
The project is set to transform Canada into an LNG exporter, providing much-needed supply to a market grappling with price spikes. Europe is increasingly dependent on the super-cooled fuel to replace Russian pipeline gas, a trend that has tightened global flows for the past several years.
LNG Canada, located on the country’s western coast, is also convenient for Asian gas consumers due to the shorter transport time compared with tankers that sail from terminals on the US Gulf Coast, which mainly pass through the Panama Canal or around the Cape of Good Hope to reach the Pacific.
The project is a joint venture between Shell Plc, Petronas, PetroChina, Mitsubishi Corp. and Korea Gas.
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