Shell ships first LNG Canada cargo

The 174,000-cbm GasLog Glasgow, which is on charter by Shell, left Kitimat on Monday, according to statements by LNG Canada and Shell.

This marks the start of operations at Canada’s first large-scale LNG export facility, located in the traditional territory of the Haisla Nation

GasLog Glasgow’s AIS data provided by VesselsValue shows that the LNG carrier is expected to arrive later this month at the Kogas-operated Incheon LNG terminal in South Korea.

Koas is a partner in the LNG project along with Malaysia’s Petronas, PetroChina, and Japan’s Mitsubishi Corporation.

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.

GasLog Glasgow arrived at the LNG Canada jetty in Kitimat to load the first cargo on Saturday.

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.

Expansion

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.

“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, integrated gas.

“We expect that supplying LNG will be the biggest contribution Shell will make to the energy transition over the next decade, and projects like LNG Canada position our portfolio to achieve this,” he said.