Canada’s First LNG Shipment Sets Sail for Asia

Canada has launched its first shipment of liquefied natural gas to Asia, marking a new stage in energy exports. This landmark move aims to diversify markets, reducing reliance on the United States and establishing Canada as a key player in the global LNG market.

A New Era Begins

The GasLog Glasgow tanker departed from Kitimat, British Columbia, on Monday, carrying the initial LNG cargo from the LNG Canada terminal. The terminal’s construction began nearly seven years prior. Shell PLC-led LNG Canada is also contemplating expanding its operations.

“We continue to explore pathways with our partners for a potential Phase 2. There are no guarantees at the minute,”

—Chris Cooper, Chief Executive Officer, LNG Canada

The cost of the project’s first phase reached $48.3 billion, which includes the Kitimat terminal and the Coastal GasLink pipeline. Once fully operational, approximately 170 vessels annually will transport LNG to Asian markets. The global LNG market is projected to reach $230 billion by 2028, demonstrating substantial growth (Mordor Intelligence 2023).

Diverse Perspectives

While this event marks a significant milestone, it also sparks debate. Climate activists and environmental groups are urging a greater focus on renewable energy sources rather than fossil fuels, such as LNG. The International Institute for Sustainable Development voiced concerns that any further LNG investments could potentially create an oversupply.

Statements and Celebrations

Canadian leaders issued statements to celebrate Monday’s departure. Prime Minister Mark Carney stated that with this shipment, Canada is exporting its energy to reliable partners, diversifying trade, and cutting global emissions. B.C. Premier David Eby emphasized the significance of accessing global markets and decreasing dependency on the United States.

At the peak of construction in 2023, the project required over 9,000 workers on rotation at the Kitimat industrial site. LNG Canada will employ up to 350 workers during operations. Crystal Smith, the Haisla chief councillor, highlighted the project’s respect for Indigenous communities.

Partners and Projects

Shell holds the largest stake in LNG Canada, with 40 percent, followed by Malaysia’s Petronas at 25 percent. Executives from the partners issued statements to mark the first shipment. François Poirier, the CEO of TC Energy, emphasized that this is just the beginning of Canada’s LNG journey. Other active LNG projects in B.C. include Woodfibre LNG, Cedar LNG, Ksi Lisims LNG, and Tilbury LNG.

This event sets a precedent for future energy export projects and their impact on Canada’s economy and international relationships, while the industry navigates environmental considerations.