Shell Pioneers Canada’s LNG Exports to Meet Rising Asian Market Needs

According to a recent report from Bloomberg, Shell Plc has kicked off exports from Canada’s inaugural liquefied natural gas (LNG) project, catering to the surging demand in Asia and solidifying its foothold in the global LNG arena. The first shipment was loaded onto the Gaslog Glasgow vessel at a facility located in British Columbia. LNG Canada Development Inc., the project’s operator, announced that this cargo is headed for “global markets,” with Shell holding a 40% stake in this venture.

As demand for natural gas continues to climb, particularly among buyers seeking routes that sidestep geopolitical tensions—especially those surrounding the Persian Gulf—LNG Canada is ramping up operations. Situated on Canada’s west coast in Kitimat, this plant is strategically positioned closer to East Asian customers and is coming online just ahead of new export facilities being developed in both the U.S. and Qatar, which are not expected to contribute substantially until next year at least.

Cederic Cremers,Shell’s president of integrated gas,shared his thoughts during an interview: “This location on the Pacific coast offers strategic advantages.” He emphasized how it links competitively priced upstream gas from British Columbia with increasing demand across Asia.

Later this year, a second production unit will commence operations at LNG Canada. By 2026, when fully operational with two production trains running simultaneously, Canada could ascend to eighth place globally for LNG exports—trailing behind countries like Nigeria based on Bloomberg’s compiled data.

Discussions are underway between Shell and its partners—including Petroliam Nasional Bhd., PetroChina Co., Mitsubishi Corp., and Korea Gas Corp.—for further expansion plans; they anticipate making a final investment decision next year.

Looking ahead, Shell projects that global LNG demand will soar by 60% by 2040 due primarily to growth in Asia. The company holds stakes in various plants worldwide—including those located in Qatar and Australia—and boasts an extensive trading operation alongside managing about 10% of all global LNG shipping capacity.

Last year alone saw Shell’s LNG sales hit 66 million tons—a figure expected to grow by approximately 4% to 5% annually through the end of this decade. along with these sales figures, they plan on adding another annual capacity of around 12 million tons before we reach that point.