Shell’s LNG Canada to ship second cargo

The 174,000-cbm Puteri Sejinjang, chartered by Malaysia’s Petronas, was located on Friday not far from the Kitimat facility, where it is expected to arrive later in the day, according to its AIS data provided by VesselsValue.

Puteri Sejinjang is being escorted by the LNG-powered tug HaiSea Kermode, part of HaiSea Marine’s fleet of tugs that serve LNG Canada.

Besides this LNG carrier, the 174,000-cbm Diamond Gas Metropolis, which is serving Mitsubishi’s unit Diamond Gas International, is also expected to arrive at the Kitimat facility next week, its AIS data shows.

Japan’s Mitsubishi and Petronas are LNG Canada shareholders and offtakers of LNG, along with South Korea’s Kogas and PetroChina.

At 40 percent, Shell has the largest working interest in the LNG Canada joint venture.

Shell started production at the first liquefaction train at its LNG Canada export terminal on June 22.

Moreover, the 174,000-cbm GasLog Glasgow, which is on charter by Shell, arrived at the LNG Canada jetty in Kitimat to load the first cargo on June 28.

GasLog Glasgow loaded its first cargo and departed the facility on Monday, marking Canada’s entry onto the map of LNG exporting nations.

The LNG carrier is expected to arrive at the Kogas-operated Incheon LNG terminal in South Korea later this month.

14 mtpa

Each LNG Canada joint venture participant will provide its own natural gas supply and individually offtake and market their respective share of LNG from the project.

All LNG produced at the facility — from day one — will be provided to Shell and the other joint venture participants.

Shell and its partners made the final investment decision on the LNG Canada project in October 2018.

Contractor JGC Fluor is constructing the first phase of the project.

One of the largest private investments in Canadian history, the plant will initially produce 14 million tonnes per annum (mtpa) LNG for export.

With a proposed Phase 2 expansion, Shell and its partners plan to double the terminal’s capacity to 28 mtpa.