© Supplied by LNG Canada The Shell LNG Canada facility, on the west coast of Canada, has produced its first cargo.
The 14 million tonne per annum (mtpa) facility is in Kitimat, British Columbia.
“LNG Canada grows our leading integrated gas portfolio, providing a reliable supply of LNG to markets, most notably in Asia,” said Cederic Cremers, Shell’s president of integrated gas.
He went on to say the supply of LNG would be Shell’s “biggest contribution” to the energy transition over the next ten years. Shell is the single largest shareholder in LNG Canada, with a 40% stake.
The company sees LNG as offering a lower-carbon alternative to coal for power generation. LNG also helps balance out intermittent supplies from renewables, it noted.
Canadian Prime Minister Mark Carney said the project start up demonstrated the country had what the world needed.
“With LNG Canada’s first shipment to Asia, Canada is exporting its energy to reliable partners, diversifying trade, and reducing global emissions — all in partnership with Indigenous Peoples. By turning aspiration into action, Canada can become the world’s leading energy superpower with the strongest economy in the G7.”
Carney has previously expressed concerns around investments in fossil fuels becoming stranded assets. LNG Canada is due to export gas for 40 years.
Delivering work
Other partners in LNG Canada are Petronas with 25%, PetroChina and Mitsubishi Corp. with 15% each, while Korea Gas Corp. has 5%.
Each partner in the project will provide its own feedstock to the facility and will also oversee their own offtake and marketing. The first cargo is on the Gaslog Glasgow, which is due to arrive in Incheon, South Korea, on July 20.
Shell noted that more than 50,000 Canadians have worked on the project, with C$5.8 billion (£3.1bn) in contracts to local businesses in BC.
The partners reached final investment decision (FID) on the plan in October 2018. JGC and Fluor carried out construction work. This included the construction of the world’s second largest LNG storage tank, with a volume of more than 225,000 cubic metres.
There is scope to expand LNG Canada. A second phase would involve the installation of two more trains, doubling capacity to 28mtpa.
The project is around 10 days sailing from Japan, versus 24 days for projects from the US Gulf Coast.
LNG Canada also awarded work to its host, the Haisla Nation. Chief councillor Crystal Smith said the start up as a “testament to what can happen when industry elevates and respects the role of Indigenous communities in major projects”.
LNG Canada, Smith continued, had opted to “build a relationship first before even considering building a project. They focused on understanding what mattered first and foremost to Haisla Nation, and to Indigenous communities in the region. So much has changed for our community since that first meeting. Our people, our country and the world are better off today, and will be for decades to come.”
