LNG Canada loads its first cargo of LNG for global markets from new export facility in Kitimat
LNG Canada says that it has successfully loaded a first cargo of liquefied natural gas that is now destined for global markets, marking the start of operations at Canada’s first large-scale LNG export facility.
The new LNG Canada export facility is located in Kitimat, British Columbia, in the traditional territory of the Haisla Nation. It is a long-life asset that will initially export LNG from two processing units or “trains” with a total capacity of 14 million tonnes per annum (mtpa).
“Today is a historic moment for LNG Canada and our five joint venture participants (JVPs), Haisla Nation, the District of Kitimat, British Columbia and all of Canada,” said Chris Cooper, LNG Canada President and CEO. “We began with a clear vision: To work side-by-side with First Nations and local communities as the catalyst for a thriving new energy sector in Canada, and to set a new standard for safe and responsible LNG production. As world events continue to demonstrate, a reliable supply of responsibly produced energy should never be taken for granted. We’re proud to be part of the effort to help Canada diversify its export markets and to deliver lower carbon energy to the world, for many decades to come.”
On making its final investment decision in October 2018, LNG Canada agreed to meet the Government of British Columbia’s conditions for LNG development in the province, to provide jobs, training opportunities and additional benefits to residents.
Some of the benefits LNG Canada has delivered to British Columbians and Canadians over the span of construction include:
More than 50,000 Canadians have directly contributed to building LNG Canada Phase 1. The connecting Coastal GasLink pipeline employed more than 25,000 Canadians. In operations, more than 300 full-time, permanent LNG Canada jobs have been created.
The cumulative value of LNG Canada’s contracts and subcontracts to local, Indigenous and other businesses in B.C. to date has exceeded CAD$5.8 billion; this includes more than CAD$4.9 billion to Indigenous-owned and local area businesses. It includes a CAD$500 million contract with HaiSea Marine, a joint venture between the Haisla Nation and North Vancouver-based Seaspan providing harbour and escort tugboat services to LNG Canada with its innovative fleet of battery-powered and low emissions vessels.
LNG Canada has to date invested more than CAD$10 million in workforce development programs—meaningful trades training and development programs designed to increase the participation of local area residents, Indigenous communities and British Columbians in trades and construction-related activities including but not limited to the LNG Canada project.
We have also contributed more than CAD$13 million to programs and equipment benefiting Kitimat, Terrace and First Nations communities, and enabled and supported the addition of new long-term housing in the Kitimat and Terrace region.
LNG Canada and its JVPs continue to explore pathways for a potential Phase 2 expansion, which may include the construction of two additional LNG trains, resulting in a total plant capacity of 28 mtpa.
Each LNG Canada joint venture participant will provide its own natural gas supply and individually offtake and market their respective share of liquified natural gas from LNG Canada, starting today.
About LNG Canada
LNG Canada operates a liquefied natural gas (LNG) export facility in Kitimat, British Columbia, Canada, in the traditional territory of the Haisla Nation. Today, LNG Canada produces LNG from two processing units, referred to as “trains.” 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 Kitimat LNG Partnership (15%); Mitsubishi Corporation, through its subsidiary Diamond LNG Canada Partnership (15%); and Korea Gas Corporation, through its wholly-owned subsidiary Kogas Canada LNG Partnership (5%). It is operated through LNG Canada Development Inc.
About LNG Canada’s Joint Venture Participants
Shell is a global group of energy and petrochemical companies, employing around 96,000 people across more than 70 countries. It has activities ranging from oil and gas exploration and production to the marketing of fuels and lubricants, and research and development. As a leading global supplier, Shell manages every stage of the LNG value chain—from discovering and extracting natural gas, to liquefaction, shipping, regasification, and delivering it directly to customers.
PETRONAS is a fully integrated energy company with extensive experience in LNG. Through its wholly owned upstream energy company, Progress Energy Canada Ltd and its partners, PETRONAS is one of the largest natural gas reserves owner in Canada – with the majority of these reserves in the North Montney natural gas formation in northeast British Columbia. The North Montney LNG Limited Partnership is a wholly-owned entity of PETRONAS.
Mitsubishi Corporation is a global integrated business enterprise that develops and operates business together with its offices and subsidiaries worldwide. MC has eight Business Groups that operate across virtually every industry: Environmental Energy, Material Solution, Mineral Resources, Urban Development and Infrastructure, Mobility, Food Industry, Smart-Life Creation, and Power Solution. Mitsubishi Corporation has been investing in LNG since 1969 and currently has interests in 13 LNG projects worldwide, capable of meeting approximately 20% of Japan’s LNG demand.
PetroChina Company Limited (PetroChina) is one of the world’s major oil and gas producers and distributors and a significant player in the global LNG industry. PetroChina is engaged in a wide range of activities related to oil, gas, LNG and new energy, providing energy products which fuel economic and social development. While focusing on growing its core business through innovation and responsible corporate governance, PetroChina actively pursues opportunities for the low-carbon transformation, accelerating new advantages in green development.
KOGAS is one of the world’s largest LNG importers and South Korea’s principal LNG provider, operating five LNG import terminals and a nationwide pipeline network. KOGAS has taken a new path of seeking opportunities to participate in the development of international upstream projects, as well as downstream businesses.