First LNG production occurred at the LNG Canada site in Kitimat, British Columbia (BC) this past weekend according to several media reports that confirmed this information with LNG Canada. This marks the first successful utilization of the site’s Train 1 liquefaction unit (nameplate gas intake ~1 Bcf/d) for LNG output and starts Canada down the path of what will be several decades, at a minimum, of large scale LNG exports to overseas destinations and lessening its near sole dependence on the United States for natural gas exports. A recent Reuters media report also mentions that an unspecified issue with Train 1 is currently preventing it from operating at full intake capacity and that LNG output will be limited until the issue is resolved.
In addition to the two LNG tankers that are currently sailing to the site (see our Analyst Insight of June 18), a third tanker has been confirmed by ship tracking data to be on its way to Kitimat. At the time of writing, the Gaslog Glasgow (pictured below) was in the waters just to the west of BC’s Queen Charlotte Islands, a day or two sail from LNG Canada with an arrival date estimated by Reuters as June 29. LNG Canada has not yet posted any ship name or arrival dates on its website. Should the arrival date prove accurate, this should ensure that first exports from LNG Canada will take place by mid-2025 as has been long repeated by the LNG Canada consortium partners.
