Date: July 1, 2025
Location: Kitimat, British Columbia
Historic Milestone: LNG Canada Launches First Export Shipment
In a landmark moment for Canada’s energy sector, LNG Canada officially shipped its first-ever liquefied natural gas (LNG) export cargo from its Kitimat, British Columbia terminal to Asian markets. The cargo was loaded onto the Gaslog Glasgow tanker, marking the start of a new era in Canadian energy exports.
This milestone comes just over a week after LNG Canada confirmed its first production, making it the country’s first large-scale commercial LNG operation.
Why This Matters: Diversifying Canada’s Energy Exports
LNG Canada is the first central LNG facility in North America with direct access to the Pacific Ocean, offering a strategic advantage for shipping to Asia. This project is seen as a critical step in diversifying Canada’s export markets amid rising trade tensions with the United States.
“This is something Canada really needs right now,” said Chris Cooper, CEO of LNG Canada.
Project Overview: A $40 Billion Energy Investment
The C$40 billion (US$29.4 billion) LNG Canada project is a joint venture between:
- Shell Plc
- Petronas
- PetroChina
- Mitsubishi Corp
- KOGAS
It is considered the largest private-sector investment in Canadian history.
Key Facts:
- Location: Kitimat, British Columbia
- Capacity: 14 million metric tonnes of LNG per year (Phase 1)
- Pipeline: Supplied via the Coastal GasLink pipeline from northeast B.C.
- Future Plans: Shell and partners aim to double capacity pending a final investment decision in 2026
Competitive Edge: Cost and Route Advantages
Canada is the world’s fifth-largest natural gas producer and fourth-largest exporter. However, until now, nearly all exports were sent to the U.S. LNG Canada is changing that by opening access to energy-hungry Asian markets.
Advantages Over U.S. LNG:
- Shorter shipping route to Asia (no Panama Canal transit)
- Lower supply costs: Canadian gas trades at less than half the U.S. Henry Hub benchmark
- Strategic Pacific location
“West coast LNG in Canada competes exceptionally well against anything being developed in the United States,” said Mark Fitzgerald, CEO of Petronas Canada.
A Decade in the Making
Initially proposed in 2012, LNG Canada’s launch comes nearly 10 years after the U.S. began LNG exports from the lower 48 states. The U.S. has since become the world’s largest LNG exporter, prompting criticism that Canada has been too slow to develop its LNG industry.
Now, with its first cargo en route to Asia, Canada is finally stepping onto the global LNG stage.
Conclusion
The successful launch of LNG Canada’s first export cargo is a transformational moment for Canada’s energy sector. With its strategic location, cost advantages, and growing global demand, LNG Canada positions itself as a key player in the global LNG market—and a serious competitor to U.S. exporters.
The Maritime-Hub News Network
