LNG Canada Delivers 50th Cargo

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land Texas)

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Summary

It took only a few short months for LNG Canada to ramp up from 25 deliveries to 50. With trade diversification prioritized, Canadian leaders are ready for more.

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Canada's LNG Sector Moves from Zero to 50

Making its debut delivery only last year, the operators of the LNG Canada facility in British Columbia celebrated the 50th shipment of liquefied natural gas (LNG).

The delivery was made Monday to an undisclosed customer. The shipment came just eight years after project planners made a final investment decision, and less than a year after its first-ever delivery.

"Together, we're making steady progress towards our vision of being a world-class asset and helping Canada become a top five global LNG exporting nation," operators said.

LNG Canada, backed primarily by Shell, features two trains, or liquefaction units, that can combine for 14 million metric tons per annum (MTPA) of gas in the liquid form. It reached 25 cargos by November, shortly before it started operations from its second train.

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Canada is the fifth-largest natural gas producer in the world, churning out close to 20 billion cubic feet per day (Bcf/d). As of now, the LNG Canada facility in Kitimat is the only operational facility in Canada capable of delivering the super-cooled gas outside of North America, helping with Canadian efforts to diversify its trade.

Canada also is a net exporter to the U.S. economy, still its largest trading partner. Data from IIR Energy show a five-day average of around 5.08 Bcf/d, slightly below the historic average of around 6 Bcf/d.

Canada Edging Away from U.S. Trade

Canada, however, is working to halve the amount of U.S. trade over the coming years, given the harsh rhetoric from U.S. President Donald Trump. Touring the world, Canadian leaders have said the nation is open for business.

"We are diversifying our trade and attracting massive new investment to create new opportunities for our workers and businesses," Canadian Prime Minister Mark Carney said ahead of a trade tour of India. "We are forging new partnerships abroad to create greater certainty, security and prosperity at home."

Trump has upended historic western relations with an aggressive foreign policy and tariff agenda. At times, he's suggested Canada join the United States. While his tariff agenda was shot down by the U.S. Supreme Court, Trump has shown no signs of backing down.

The U.S. president also sees LNG as part of a strategy of national dominance, backing programs from Alaska to the Gulf Coast. Questions remain, however. Energy Transfer Partners said recently it was looking for a third party to develop its proposed Lake Charles LNG facility after failing to make a final investment decision.

While securing some preliminary offtake agreements, meanwhile, the Alaska LNG facility would require hundreds of miles of new pipeline before it can begin shipping out gas. As U.S. manufacturers don't make much of the tubular products necessary for pipelines, the Supreme Court decision could complicate a steel supply agreement with South Korean producers, given recent trade arrangements with Seoul.

Canada, meanwhile, is primed for more.

Data from IIR Energy finds there are two facilities that are considered high-probability; Cedar LNG and Woodfibre. Cedar LNG is a partnership between the indigenous Haisla Nation and Pembina Pipeline is a floating facility off British Columbia with a design capacity of 3.3 MTPA. Construction began in June. Woodfibre, a subsidiary of Pacific Energy, would have a design capacity of 2.1 MTPA. Construction began in October. Both should be completed before the decade is out.

By the Numbers

• 25 new deliveries since November
• 14 MTPA expected from LNG Canada
• 20 Bcf/d in Canadian gas production

Key Takeaways

• Canada winning the west coast LNG race
• British Columbia ready for more facilities
• LNG is part of Canada's trade diversification efforts

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).