Shell ships first cargo from major Canadian LNG facility

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Shell has achieved a significant milestone with the departure of the first liquefied natural gas cargo from its LNG Canada facility on British Columbia's west coast, marking the beginning of operations at one of North America's largest LNG export projects.

The facility, located in Kitimat, will export LNG from two processing units with a combined capacity of 14 million tonnes per annum. Shell holds the largest stake in the joint venture at 40%, alongside partners Petronas (25%), PetroChina (15%), Mitsubishi Corporation (15%), and Korea Gas Corporation (5%).

"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 of Integrated Gas. The company expects LNG supply to be its biggest contribution to the energy transition over the next decade.

The project is strategically positioned to serve growing Asian markets as they transition away from coal-fired power generation. Shell's LNG Outlook 2025 forecasts global demand will rise by approximately 60% by 2040, driven primarily by economic growth across Asia.

LNG Canada's Pacific Coast location provides a crucial link between cost-competitive upstream gas from British Columbia and expanding Asian demand. The facility offers a lower-carbon alternative to coal for electricity generation whilst supporting intermittent renewable energy sources.

The project has delivered substantial economic benefits to British Columbia, with over 50,000 Canadians employed during construction and more than $5.8 billion CAD in contracts awarded to local, Indigenous-owned, and other regional businesses.

Shell announced plans at its recent Capital Markets Day to reinforce its LNG leadership position by growing sales 4-5% annually through 2030. The LNG Canada project includes provisions for a potential Phase 2 expansion, which could add two additional processing trains and double total capacity to 28 million tonnes per annum.

The facility represents a new source of economic development for British Columbia whilst providing competitive, secure energy supply developed in partnership with local communities and First Nations.

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