Liquified Natural Gas (LNG) Infrastructure Expansion Heatmap, 2024. Source: Flickr
On October 12, 1964, the world’s first LNG carrier, the Methane Princess, delivered the first LNG cargo from Algeria to England.
Since then, the global LNG production capacity has reached 483 MTPA (million metric tonnes per year).
By 2032, global demand is forecast to reach around 900 billion cubic metres per year, two times higher than LNG production in 2024. This growth will be supported by a number of new projects that are currently at various stages of investment decisions, both those already approved (FID) and those in the pre-FID phase.
By reaching full production capacity of its first facility Canada will be able to displace Egypt, which produced 12 million cubic meters of LNG in 2024, from the top ten of world’s LNG producers.
LNG exports would give Canada the opportunity to overcome its unfortunate dependence on the U.S. market and strengthen its political and economic positioning, something the new government is keen to do given the Trump factor.
LNG Canada, led by Shell, has officially started producing liquefied natural gas (LNG) at its new export terminal in Kitimat, British Columbia. This is the first time Canada has produced LNG for export, with the first shipment expected to be loaded by mid-year.
According to sources familiar with the start-up, LNG production began at around 4 a.m. local time, June 23. For now, gas is being processed through the plant’s first train known as Train 1, which has a capacity of 5.6 million tonnes per annum (mtpa).
While production has started, the facility is not yet running at full capacity due to a technical issue with one of the processing lines. As a result, only part of the plant is currently operational.
Ship tracking data from LSEG shows that the LNG tanker Gaslog Glasgow is on its way to the Kitimat terminal. The vessel is expected to arrive on June 29 and will be loaded with LNG once it docks, according to sources.
When fully operational, the LNG Canada facility will have an export capacity of 14 mtpa. The terminal is being built as part of a joint venture between several international companies: Shell holds a 40 percent stake, Malaysia’s Petronas owns 25 percent, Mitsubishi Corporation and PetroChina each have 15 percent, and Korea Gas Corporation (Kogas) holds 5 percent.
The plant is designed to process up to 1.9 billion cubic feet of natural gas per day. The total cost of the project is estimated at $40 billion, making it one of the largest energy investments in the country’s history.
Once LNG Canada reaches full operation, industry analysts expect it to shift a portion of Canada’s natural gas exports away from the United States and toward international markets. Until now, almost all of Canada’s gas exports have gone to its southern neighbor.
Data from the U.S. Energy Information Administration shows that Canadian gas exports to the U.S. increased to about 8.6 billion cubic feet per day in 2024. That’s up from 8 bcf/d in 2023 and higher than the five-year average of 7.5 bcf/d.
Additionally, two more LNG export terminals-Woodfibre LNG and Cedar LNG, are currently under construction along Canada’s Pacific Coast. Both projects are expected to be completed between 2027 and 2028.
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