Canada’s first large-scale LNG project starts production

Canada

KITIMAT, June 23, 2025 – LNG Canada has launched production for export, kicking off Canada’s first large-scale LNG project and opening new routes to Asia, Reuters reported on Sunday.

The Shell-led project is the first major North American facility with direct access to the Pacific coast. This location, in the north British Colombian community of Kitimat, enables shorter sailing times to Asian markets.

The company remains on track to load its first cargo by mid-year. The facility will have an export capacity of up to 14 million tonnes per year (tpy) once fully operational. Train 1 is currently producing at half its 5.6-million-tpy capacity due to technical issues.

LNG Canada represents a USD 40 billion-41 billion investment following a final investment decision in October 2018—making it Canada’s largest private-sector investment ever. Construction began in early 2020 and by mid-2024 was over 95% complete.

The facility includes two trains of 6.5 million tpy each and holds approvals to double this capacity in Phase 2. It is supported by the 670-kilometre Coastal GasLink pipeline, operated by TC Energy, which began delivering gas in late 2024.

JGC Fluor is the EPC contractor overseeing the project’s marine facilities, storage tanks and utility systems. LNG Canada has awarded over CAD 5 billion in procurement to British Columbia-based firms, with over CAD 4.1 billion directed to Indigenous and local businesses.

At peak, the project created around 10,000 construction jobs and is expected to sustain 950 permanent roles. Government revenues from the project are estimated at CAD 23 billion over its lifespan.

The project incorporates emissions-reducing technologies including energy-efficient turbines and hydroelectric power, aiming for less than half the global average of CO2 emissions per tonne of LNG. It received its environmental assessment certificate in 2015 after extensive engagement with Indigenous communities and local stakeholders.

The LNG tanker Gaslog Glasgow, managed by GasLog LNG Services, is expected to arrive on June 29 to load the first export cargo.

LNG Canada is a joint venture between Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi (15%) and Korea Gas (5%). It connects natural gas from British Columbia’s Montney formation to global markets via Kitimat.

Photo courtesy of LNG Canada.