Canada Becomes LNG Exporter as First Gas Ships from BC Project

The first LNG gas carrier, GasLog Glasgow (112,764 dwt) departed the LNG terminal at Kitimat, Canada, on June 30, officially marking Canada’s entry into the export market. The LNG Canada project had been gearing up in recent weeks and began the first loading over the weekend, which opens a critical market for Asia to obtain LNG from Canada.

The project is led by Shell and includes partners PETRONAS, PetroChina, Mitsubishi Corporation, and Korea Gas. Each of the participants in the project will provide its own natural gas supply and individually offtake and market their respective share of liquified natural gas from LNG Canada. The project has two trains with an initial capacity of 14 million tonnes per annum (mtpa) and plans to double capacity in the future.

The first shipment is aboard the Greek-owned vessel, which is operating under charter to Shell. The vessel’s AIS signal currently shows it bound for Incheon, South Korea, where it is scheduled to arrive on July 20.

“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,” said Prime Minister of Canada Mark Carney. “By turning aspiration into action, Canada can become the world’s leading energy superpower with the strongest economy in the G7.”

Historically, Canada’s only LNG market was to the United States by pipeline. The concept of opening to the Asian markets began more than 15 years ago with various projects proposed to Canada’s federal government. Shell, however, highlights that the timing is right now as Asia moves away from coal. Shipping LNG from Canada’s West Coast provides shorter distances and will result in lower prices for the Asian buyers.

Largely driven by economic growth in Asia, Shell in its 2025 annual forecast for LNG predicted that global demand is set to rise by around 60 percent by 2040. Shell is targeting 4 to 5 percent per year growth in its LNG sales through at least 2030.

LNG Canada reports the investment to develop the facility, which is located northeast of Vancouver, topped C$40 billion (US$29 billion). Of that, it says it invested more than C$5.8 billion (US$4.25 billion) locally in Canada.

GasLog Glasgow starting the journey toward the Pacific Ocean (Canada LNG)

The deep water port at Kitimat is more than 180 miles from the coast of British Columbia, requiring the tankers to make a 15-hour journey. Arrangements were made with British Columbia Pilots, who said two pilots were aboard the GasLog Glasgow, and the location gave rise to a new tugboat operation. Canada is requiring escort tugs, and they are being operated by HaiSea Marine, which is a partnership with the local indigenous people and Seaspan. It boasts of the “world’s greenest tugboat fleet,” all purpose-built and powered by batteries or dual-fuel LNG vessels.

Two additional LNG export projects are currently under construction on Canada’s West Coast, Cedar LNG and Woodfibre. They are scheduled to start operations in 2027 and 2028. A third one, Ksi Lisims LNG is preparing for its final financial decision.