Canada is on the verge of producing its first-ever liquefied natural gas (LNG) for export from the Pacific coast, potentially as early as this weekend, according to industry insiders familiar with project schedules.
The landmark $40-billion LNG Canada project, located in Kitimat, British Columbia, is currently finalizing cooldown operations on Train 1, scheduled from June 16 to 19. If all goes as planned, the facility will begin production at half capacity, with the inaugural LNG shipment expected to depart mid-July aboard the Gaslog Glasgow.
This milestone will establish Canada’s first operational LNG export terminal and the only one on North America’s Pacific coast, marking a significant expansion for the nation’s natural gas sector.
The project benefits from both economic and geographic advantages. Shell CEO Wael Sawan highlighted Canada’s AECO gas price benchmark of approximately $0.71 per MMBtu, substantially lower than the $3.75 rate at Henry Hub in the United States. Moreover, Kitimat’s location allows for quick access to key Asian markets, reachable in under two weeks by sea.
Backed by major energy players including Shell, Petronas, PetroChina, Mitsubishi, and Kogas, LNG Canada aims to eventually increase production capacity to 14 million tonnes per annum (mtpa). This new export facility is expected to shift a portion of Canadian natural gas exports — which currently flow predominantly to the U.S. — toward broader international markets.
The project’s emergence coincides with a slowdown in U.S. LNG permitting and growing investment in Mexico’s LNG infrastructure, positioning Canada as a new competitive player in Pacific LNG exports.
While a definitive start date has not been officially announced, a weekend launch would mark Canada’s long-awaited entry into the global LNG export market, opening new avenues for the country’s energy industry.
