Canada exports its first LNG cargo to Asia from Kitimat, B.C., a milestone in energy diversification and economic growth after a decade of planning.
Historic Shipment Launches Canada’s LNG Export Era
Canada’s first liquefied natural gas (LNG) export shipment has departed Kitimat, British Columbia, bound for Asia. The GasLog Glasgow tanker, loaded at LNG Canada’s terminal, marks a pivotal milestone in the nation’s energy sector, signaling the beginning of a new phase in Canadian energy exports.
Departure from Kitimat Terminal
The GasLog Glasgow, a specialized LNG carrier, set sail from LNG Canada’s berth in Kitimat, loaded with LNG produced from northeastern B.C. gas fields. Online maritime trackers confirm its route across the Pacific to a port in South Korea. The shipment signifies the culmination of over a decade of development by LNG Canada and its partners.
Economic Impact on Local Communities
Kitimat Mayor Phil Germuth hailed the shipment as a long-awaited achievement. “For a town of less than 9,000, managing an influx of over 7,000 rotating workers was no small task,” Germuth said. He credited LNG Canada for its proactive efforts in minimizing the project’s impact on the community, praising the company for setting a new standard in local engagement and environmental stewardship.
Navigating B.C.’s Remote Northern Waters
Two members of the British Columbia Coast Pilots guided the vessel through a complex 15-hour, 300-kilometre route from Triple Island to Kitimat. Capt. Steve Kennedy called it a “historic moment,” highlighting over ten years of collaboration among government, industry, and Indigenous communities to ensure safety and reduce environmental risks.
A $40 Billion Energy Investment
LNG Canada is a joint venture involving Shell, Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corp., and South Korea’s KOGAS. Its first phase aims to export 14 million tonnes of LNG annually, with a second phase potentially doubling output. The project represents a $40 billion investment—Canada’s largest private-sector infrastructure undertaking to date.
Strategic Goals and Global Market Reach
The LNG is cooled to –162°C and shipped in liquid form to reach global buyers, offering a higher price point than U.S. pipeline sales. This shift helps diversify Canada’s energy exports beyond the American market and aligns with federal goals to expand trade in Asia, particularly amid volatile trade dynamics with the U.S.
Environmental Concerns and Future Outlook
While LNG is promoted as a cleaner alternative to coal in emerging markets, critics urge caution. Nichole Dusyk of the International Institute for Sustainable Development warned that continued investment in fossil fuels may conflict with Canada’s climate commitments. She emphasized the growing competitiveness of renewables and the potential for oversupply in the LNG market.
Next in Line: Indigenous-Led LNG Projects
Beyond LNG Canada, additional projects are advancing, including Cedar LNG (a partnership between Pembina Pipeline and the Haisla Nation), Woodfibre LNG near Squamish, and the proposed Ksi Lisims LNG project by the Nisga’a Nation. These ventures reflect Indigenous participation and evolving energy strategies on Canada’s West Coast.