Shell-backed LNG export project in Canadian province of British Columbia began exports in July 2025
One of the largest infrastructure projects ever built in Canada, LNG Canada has completed its first phase of development some seven years after construction on the C$40.0Bn (US$28.5Bn) facility began.
In an update to its website, the business said its second train had officially begun producing liquefied natural gas (LNG).
“LNG Canada is pleased to announce we are now producing LNG from our second of two LNG processing units, known as trains. This means that both Train 1 and Train 2 are now operational together. A special thanks to all of our employees and contractors, to the Haisla Nation and the community in and around Kitimat, and to our five joint venture participants for making this important milestone possible. We will continue to advance our operations safely and responsibly, as we help Canada to diversify its export markets with key trading partners,” the statement from LNG Canada said.
In phase one, LNG Canada was set for two LNG trains, with storage tanks and processing equipment, a rail yard and wharf that is capable of berthing two LNG carriers. A planned second phase will add two more trains. Annual LNG exports are expected to be equivalent to 1,357.8Bn cubic feet (Bcfd) of natural gas per year, or 3.72 Bcfd per day inclusive of a tolerance allowance.
The facility’s largest shareholder, Shell, has said the facility is targeting Asian markets that are transitioning away from coal, with LNG Canada’s exports well positioned to fill the resulting energy gap. Shell has also taken the opportunity to point out LNG is a lower-carbon alternative to coal for electricity generation and complements intermittent renewables.
Marking its first LNG export cargo, to South Korea in July 2025, LNG Canada said that, as of early September 2025, the plant had completed 10 LNG cargo exports. The ramp-up to milestones for LNG Canada has been slower than some in the market expected, with technical challenges cited in media reports, including from Reuters. By 6 November, when LNG Canada announced the start of production from its second train, the facility had sent 22 LNG cargoes, Reuters said.
