June 23, 2025 – Kitimat, BC
LNG Canada, the landmark export facility led by Shell in partnership with Petronas, PetroChina, Mitsubishi, and Kogas, has announced its first liquefied natural gas (LNG) production from Train 1 (5.6 mtpa) at its terminal in Kitimat, British Columbia.
This milestone marks the beginning of Canada’s entry into the global LNG export market, with the first export cargo expected to load by mid-year. According to LSEG shipping data, the LNG tanker Gaslog Glasgow is already en route to Kitimat with an expected arrival on June 29.
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Key Takeaways:
- 🏗 Initial capacity online: Train 1 (5.6 mtpa); full project capacity expected to reach 14 mtpa.
- 🌎 Diversified market access: Canadian producers gain direct access to Asia-Pacific markets, reducing reliance on U.S. export pipelines.
- 🔀 Trade flow shift: With Canadian gas exports to the U.S. averaging 8.6 bcf/d in 2024 (up from 8 bcf/d in 2023), LNG Canada’s launch could redirect volumes to global buyers, potentially easing U.S. export congestion.
- 🔧 Operational hiccups: Startup is not at full capacity due to line issues, but the commissioning timeline remains intact.
What’s Next?
Two more LNG terminals—Woodfibre LNG and Cedar LNG—are under construction on the B.C. coast and expected online between 2027 and 2028, potentially doubling Canadian LNG export capacity by the end of the decade.
Bottom Line: This is a pivotal moment for Canada’s natural gas sector. As global demand for low-cost, low-emission gas rises, Kitimat’s LNG gateway gives Western producers new leverage, pricing power, and long-term market security.
