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LNG Canada

LNG Canada is a major liquefied natural gas (LNG) project currently under construction on the west coast of Canada. It is expected to deliver its first LNG shipment before the middle of the next decade.

Project overview

In October 2018, Shell along with four joint venture participants, took a final investment decision to develop LNG Canada, a major liquefied natural gas processing facility located in Kitimat, British Columbia.

LNG Canada will initially consist of two trains, or processing units, that will receive and process natural gas, converting it into LNG ready for shipping. These two units will have the capacity to produce 14 million tonnes of LNG per year. There is the possibility of expanding the facility to include up to four processing units in the future.

Project location

Kitimat was chosen as the ideal location for the facility due to the easy access to abundant, low-cost natural gas from British Columbia’s vast resources. The location also benefits from a relatively short shipping distance to north Asia, one of the fastest growing gas markets in the world. The shipping route is approximately 50% shorter than from the US Gulf of Mexico and avoids the Panama Canal.

The project has strong support from the local community, including indigenous First Nations, as well as from the local government. The project partners are also working to ensure that sustainable development is considered in every aspect of the project. For example, LNG Canada has been designed to achieve the lowest carbon intensity of any LNG project in operation today, aided by the partial use of hydropower.