Good news for Western Canada natural gas market

[dan_s]

LNG Canada Update

The Shell-led facility has officially produced its first liquefied natural gas (LNG), marking Canada’s debut as a Pacific-coast exporter of LNG. The initial output comes from Train 1 of the plant, which currently operates at about half capacity due to a partial line fault, with a full-load ramp-up expected by next year when it reaches its planned 14 million tonnes per annum (mtpa).

Currently, the first cargo is scheduled to depart in July aboard the tanker Gaslog Glasgow, reinforcing the plant’s strategic role in supplying Asian markets with lower-carbon LNG from Canada’s west coast. Once exports are underway, then Canada has finally achieved what it has long sought — an alternative export option beside the United States, which topped 8.6 billion cubic feet per day in 2024.

Leveraging the AECO price index, which is below the U.S. Henry Hub pricing, helps LNG Canada remain cost-competitive for Asian buyers — a key advantage for Canadian exporters.

The project’s single-train startup also coincides with growing global gas supply uncertainties that have come up from recent geopolitical events such as the conflict between Israel in Iran and potential Strait of Hormuz disruptions and fueling demand for Pacific-accessible LNG.

Right now, plans are in place to expand capacity, with the consortium including companies like Petronas, PetroChina, Mitsubishi, and Kogas, and targeting a final investment decision next year to add a second train and double output.

Read more: https://www.reuters.com/business/energy/lng-canada-produces-first-liquefied-natural-gas-export-sources-say-2025-06-22/