LNG Canada begins production at second unit
LNG Canada has started production of liquefied natural gas (LNG) at the second of its two processing units, known as Train 2, the company said.
Both trains at the Shell-led project in Kitimat, British Columbia – each with a capacity of 6.5 metric MMtpy – are now operational, a spokesperson said.
LNG Canada is the first major LNG export facility in Canada and the first on the west coast of North America that provides direct access to Asia, the world's largest market for the liquid fuel. When fully operational, the facility is expected to process about 2 Bft3d of gas.
LNG Canada, which took almost seven years to build, shipped its first cargo on June 30. However, technical challenges have made the ramp-up slower than many analysts expected (learn more).
A 22nd LNG cargo departed the LNG Canada facility on Thursday for export to global markets, the spokesperson said.
Market participants have expressed hope that the startup of the second train will create enough demand to reduce the glut of natural gas in storage in Western Canada and help lift prices.
LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina, Japan's Mitsubishi Corp., and South Korea's KOGAS.
Last month, MidOcean - an LNG company backed by EIG and Saudi Aramco - announced a plan to buy a fifth of the Petronas venture that holds a 25% share of LNG Canada (learn more).
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