UK-based Shell is set to double the production of liquefied natural gas (LNG) at LNG Canada.
Shell operates the project as a joint venture. It has a 40% interest, while Petronas, the maker of lubricants like agricultural oil, has a 25% interest. Other investors involve PetroChina (15%), Mitsubishi (15%) and Korea Gas Corp. (5%). The facility represents a good proportion of Canada’s exports of LNG. Indeed, some 1.9 billion cubic feet of natural gas will be processed at the facility every day.
The facility’s second train is set to boost output by 6.5 million tons. The first train, however, has a similar capacity in theory, but Reuters reports that the consortium has had issues increasing the capacity. Indeed, it says it is running at only half capacity.
In September, the 14th cargo loaded from the facility, with a further one being set to leave from Kitimat. According to LSEG data reported by Reuters, some 300,000 tons per day were exported from LNG Canada, although this is down from the 400,000 tons from the previous month. Some 14 million tons of LNG is expected to be produced at LNG Canada each year when it reaches peak capacity.
Meanwhile, another LNG project is progressing toward construction. The Ksi Lisims project, another LNG project, was earlier this year awarded an environmental assessment certificate. Together with this approval from the government of British Columbia, the federal government of Canada also gave approval. LNG Canada is well positioned to access global markets, although most output currently goes to the US.
