LNG Canada Produces First LNG for Export

The Shell-led LNG Canada facility has produced its first LNG for export in Kitimat, British Columbia, a spokesperson for the project confirmed on Sunday.

The milestone comes in advance of the facility loading its first LNG export cargo, which LNG Canada said it remains on track to do by the middle of this year.

The facility is the first large-scale Canadian LNG project to begin production and also the first major LNG facility in North America with direct access to the Pacific coast, significantly reducing sail time to Asian markets when compared to U.S. Gulf coast facilities.

When fully operational it will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements.

Two people familiar with the startup of the plant told Reuters it began producing LNG at 4 a.m. local time. The people said the super-chilled gas is being produced from the facility's Train 1, which has a capacity of 5.6 mtpa.

Only a portion of the processing plant is operating, according to the two people. Train 1 has had difficulties with one of its lines and will only produce at half its capacity until the problem is solved, one of the sources