Shell Canada Energy, an affiliate of Shell, announced that the first cargo of liquefied natural gas (LNG) has left the LNG Canada facility on the west coast of Canada. At 40%, Shell has the largest working interest in the LNG Canada joint venture. Located in Kitimat, British Columbia, the facility will export LNG from two processing units or 'trains' with total capacity of 14 million tonnes per annum (mtpa).
'LNG Canada grows our leading integrated gas portfolio, providing a reliable supply of LNG to markets, most notably in Asia,' said Cederic Cremers, Shell’s President, Integrated Gas. 'We expect that supplying LNG will be the biggest contribution Shell will make to the energy transition over the next decade, and projects like LNG Canada position our portfolio to achieve this.'
As Asian markets transition away from coal, exports from LNG Canada are well positioned to play a crucial role in global decarbonisation efforts. LNG is a lower-carbon alternative to coal when used for electricity generation and a partner for intermittent renewables.
Shell’s LNG Outlook 2025 forecasts global demand for LNG is set to rise by around 60% by 2040, largely driven by economic growth in Asia. LNG Canada’s strategic location on Canada’s Pacific Coast connects cost-competitive upstream gas from British Columbia to growing Asian demand.
LNG Canada brings a new source of economic development to British Columbia, delivering a competitive, secure, and reliable source of energy in partnership with local communities and First Nations.
Background
- LNG Canada is a joint venture comprised of Shell plc, through its affiliate Shell Canada Energy (40%); PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25%); PetroChina Company Limited, through its subsidiary PetroChina Canada Limited (15%); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Ltd. (15%); and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Ltd (5%). It is operated through LNG Canada Development Inc.
- At Capital Markets Day 2025, Shell announced plans to reinforce our leadership position in liquefied natural gas (LNG) by growing sales by 4-5% per year through to 2030.
- Each LNG Canada joint venture participant will provide its own natural gas supply and individually offtake and market their respective share of LNG from the project.
- All LNG produced at the facility -- from day one -- will be provided to Shell and the other joint venture participants.
- Over 50,000 Canadians have worked on the LNG Canada venture with more than $5.8 billion CAD in contracts and subcontracts to local, Indigenous-owned and other businesses in British Columbia.
- The project includes an option for a future Phase 2 expansion, which could include the construction of two additional LNG trains, bringing total capacity to 28 million tonnes per annum (mtpa).
Source: Shell
