The LNG Canada export terminal in Kitimat, B.C., in April, 2025.Aaron Whitfield/The Globe and Mail
LNG Canada is preparing to start the second processing unit for liquefied natural gas at its export terminal in Kitimat, B.C.
Shell PLC-led SHEL-N LNG Canada’s first phase in Kitimat features two “trains,” or separate LNG cooling processes.
The facility became the country’s first export terminal for the fuel when it began shipping to Asia from Kitimat in June.
The $18-billion terminal relies on natural gas-fired turbines running at high efficiency to help supercool natural gas into liquid form, with two turbines per train.
Flare stacks are used to burn off natural gas during the commissioning process in which the turbines are gradually brought on stream.
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In a community notice to Kitimat residents this week, LNG Canada said planned flaring, associated with gearing up for the second train, will take place from Oct. 7 to Nov. 10.
“Flaring is a provincially regulated safety measure that ensures the controlled, efficient combustion of natural gas during specific operational phases,” the notice said, cautioning local residents about increased noise and black smoke.
RBC Capital Markets analyst Michael Harvey said in a research note Wednesday that the startup phase for Train 2 would support increased sailings in the future.
“The project remains in ramp-up mode,” he said. “At full export capacity, the facility will require roughly 15 export tanker vessels per month.”
Mr. Harvey said that of the 15 cargo sailings so far, there have been seven trips to South Korea, four to Japan and three to China, with the latest shipment destined for Taiwan.
Each train is designed to handle seven million tonnes of LNG exports a year.
“Train 2 start-up activities continue to advance. A 15th cargo departed the LNG Canada facility on Oct. 5. A 16th cargo is expected to depart in the coming days,” LNG Canada said in a statement.
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Coastal GasLink, operated by TC Energy Corp. TRP-T, is supplying natural gas to the Kitimat site located on the Haisla Nation’s traditional territory.
LNG Canada’s co-owners are expected to make a final investment decision in 2026 on whether to forge ahead with a Phase 2 expansion, which would double the plant’s total capacity to 28 million tonnes a year.
London-based Shell has the largest stake in LNG Canada at 40 per cent, followed by Malaysia’s state-owned Petronas (25 per cent), PetroChina (15 per cent), Japan’s Mitsubishi Corp. (15 per cent) and South Korea’s Kogas (5 per cent).
Last week, MidOcean Energy said it is acquiring a 20-per-cent interest in key Petronas assets in Canada, participating in natural gas operations in northeastern British Columbia and the Petronas stake in LNG Canada.
There have been numerous delays in Canada’s fledgling LNG sector over the past decade. Two B.C. projects are currently under construction: Woodfibre LNG, near Squamish, and Cedar LNG, in Kitimat.
A B.C. project aiming to open in 2029, Nisga’a Nation-backed Ksi Lisims LNG, plans to have capacity for 12 million tonnes a year, which would make it the country’s second-largest export terminal for the fuel, after LNG Canada.
Environmental groups and climate activists maintain that companies should not be investing more money in fossil fuels such as LNG, saying the focus should be on renewable energy.