Shell Canada Energy, an affiliate of Shell plc, has announced that the first shipment of liquefied natural gas (LNG) has departed from the LNG Canada facility located on the west coast of Canada. With a 40% stake, Shell holds the largest working interest in the LNG Canada joint venture. Situated in Kitimat, British Columbia, the facility is designed to export LNG through two processing units, or “trains,” with a combined capacity of 14 million tonnes per annum (mtpa).
Cederic Cremers, Shell’s President of Integrated Gas, stated that “LNG Canada enhances our extensive integrated gas portfolio, ensuring a stable supply of LNG to markets, particularly in Asia.” He emphasized that supplying LNG is projected to be Shell’s most significant contribution to the energy transition over the coming decade, with projects like LNG Canada strategically positioning their portfolio for success. As Asian markets begin to shift away from coal, LNG Canada’s exports are poised to contribute significantly to global decarbonisation efforts.
LNG is recognized as a lower-carbon alternative to coal for electricity generation and complements renewable energy sources. According to Shell’s LNG Outlook for 2025, global LNG demand is expected to grow by approximately 60% by 2040, primarily due to economic advancements in Asia. LNG Canada’s advantageous location on Canada’s Pacific Coast allows for the efficient connection of competitively priced upstream gas from British Columbia to rising Asian demand.
Moreover, LNG Canada is expected to stimulate economic development in British Columbia, providing a competitive, secure, and reliable energy source while fostering partnerships with local communities and First Nations.