Shell ships first LNG cargo from Canada’s West Coast

Shell Canada Energy has shipped the first cargo of liquefied natural gas (LNG) from the LNG Canada facility in Kitimat, British Columbia. (Image: Shell)

Shell Canada Energy has shipped the first cargo of liquefied natural gas (LNG) from the LNG Canada facility in Kitimat, British Columbia, marking a significant milestone for Canada’s energy sector and for Shell’s global gas portfolio.

Shell holds a 40% stake in LNG Canada, the largest share among the project’s five joint venture participants. The Kitimat-based facility features two LNG processing trains with a combined export capacity of 14 million tonnes per annum (mtpa). LNG produced at the plant will be delivered to international markets, with a primary focus on Asia.

“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. “We expect that supplying LNG will be the biggest contribution Shell will make to the energy transition over the next decade, and projects like LNG Canada position our portfolio to achieve this.”

The start of shipments from Kitimat opens a new Pacific basin route for LNG exports, connecting British Columbia’s abundant, cost-competitive upstream gas to growing Asian demand. With economies in the region increasingly shifting away from coal, Canadian LNG is expected to help reduce global emissions. Natural gas emits less carbon dioxide than coal when used for power generation and provides dispatchable backup to intermittent renewables.

Shell’s LNG Outlook 2025 forecasts a 60% increase in global LNG demand by 2040, largely driven by economic growth and energy diversification in Asia. The company has outlined plans to grow its LNG sales by 4–5% annually through 2030, aiming to solidify its leadership position in the sector.

Each joint venture partner in LNG Canada will supply its own gas feedstock and manage its own share of LNG offtake. In addition to Shell Canada Energy’s 40% interest, other stakeholders include PETRONAS (25%), PetroChina (15%), Mitsubishi Corporation (15%), and Korea Gas Corporation (5%). The project is operated through LNG Canada Development Inc.

Beyond its role in decarbonization, the project represents a major investment in Canada’s energy infrastructure. More than 50,000 Canadians have worked on the venture to date, and over CA$5.8 billion in contracts and subcontracts have been awarded to local, Indigenous-owned and regional businesses in British Columbia.

The project also includes an option for a future Phase 2 expansion, which would add two more LNG trains and double export capacity to 28 mtpa. While no final investment decision has been made on the expansion, its inclusion signals the partners’ long-term commitment to LNG development in Canada.

LNG Canada is the country’s first large-scale LNG export facility, and its launch comes amid growing calls for Canada to leverage its natural gas reserves in the global energy transition. By tapping into Asian demand from the Pacific Coast, the project reduces shipping times and emissions compared to routes through the Gulf of Mexico, where most North American LNG is currently exported.

For Shell, the milestone at Kitimat underscores a strategic pivot toward natural gas as a core pillar of its low-carbon growth strategy. The company continues to divest from oil-heavy upstream assets while doubling down on LNG infrastructure and trading capabilities to support both energy security and decarbonization across global markets.