{"id":14649,"date":"2025-07-01T07:41:16","date_gmt":"2025-07-01T07:41:16","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=14649"},"modified":"2025-07-01T07:41:16","modified_gmt":"2025-07-01T07:41:16","slug":"canadas-historic-first-cargo-of-lng-sets-sail-for-buyers-in-asia","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/14649\/","title":{"rendered":"Canada’s historic first cargo of LNG sets sail for buyers in Asia"},"content":{"rendered":"

RoydadNaft –<\/a><\/span>A tanker carrying the first cargo of liquefied natural gas from LNG Canada set sail Monday from British Columbia\u2019s northern coast, heralding the commercial startup of the $18-billion Shell PLC-led export terminal and ushering in Canada\u2019s long-awaited debut into the global LNG market.<\/p>\n

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The GasLog Glasgow, a vessel chartered by Shell, arrived early Saturday at the Port of Kitimat for loading and is expected to deliver the country\u2019s first large-scale cargo of LNG to Asia in the coming days.<\/p>\n<\/div>\n<\/section>\n

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\u201cWe\u2019re very proud to be leading a new energy business in Canada at scale,\u201d LNG Canada chief executive Chris Cooper said, calling it an \u201chistoric\u201d moment that shows the country can \u201cstand on its own two feet.\u201d<\/div>\n<\/section>\n
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\u201cWe\u2019re helping Canada diversify its export markets, and, in doing that, we\u2019re providing a secure supply of energy to folks in Asia who are looking to further decarbonize,\u201d he said.<\/p>\n<\/div>\n<\/section>\n

The inaugural cargo comes nearly 15 years after the first application for a licence to export LNG from the West Coast was submitted to federal regulators. Since that time, more than a dozen LNG projects aiming to capitalize on Canada\u2019s shorter shipping distances to Asia and abundant supply of natural gas have come and gone amid political flare-ups over pipelines, tightening environmental standards and shifting global market dynamics.<\/p>\n

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Energy producers in Western Canada and their investors have waited impatiently for LNG Canada\u2019s startup, hoping to see a boost in returns as growing volumes of gas begin making their way to Canada\u2019s West Coast for export \u2014 something akin to the uplift in Canadian crude prices that followed the Trans Mountain pipeline expansion (TMX) project \u2014 but so far experts say there are few signs that the newly commissioned facility is having a material impact on markets.<\/p>\n<\/div>\n<\/section>\n

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Prices for Western Canada\u2019s natural gas, which trade at a discount to Henry Hub, have been hit hard by a combination of high storage inventories and pipeline flow restrictions that kept the average cash price for AECO, Canada\u2019s primary gas price benchmark, below $1\/MMBtu in June.<\/span><\/p>\n<\/div>\n<\/section>\n

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\u201cWe\u2019re dealing with a market that\u2019s extremely oversaturated and there\u2019s lots of gas available,\u201d Archer said. \u201cSimilar to TMX, we do anticipate that there\u2019ll be an impact (from LNG Canada) on prices, but we\u2019re not seeing it yet and we expect it\u2019ll probably take a little bit of time to happen.\u201d<\/p>\n<\/div>\n<\/section>\n

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Despite the near-term price doldrums, Canada\u2019s energy sector has been buoyed by growing anticipation of a structural increase in demand for natural gas across North America, driven by U.S. LNG export capacity nearly doubling by the end of the decade to between 24 and 26 Bcf\/d.<\/p>\n<\/div>\n<\/section>\n

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Canada\u2019s nascent LNG industry could also grow substantially by the end of the decade, from the roughly 2.5 Bcf\/d currently under construction or operating, to more than 6 bcf\/d if existing projects proceed as planned \u2014 including a Phase 2 expansion of LNG Canada which would double the facility\u2019s capacity to 28 mtpa.<\/p>\n<\/div>\n<\/section>\n

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\u201cWe expect natural gas prices to strengthen to between $4 and $5 over the coming year, and as Canada increases its LNG capacity, we think the current discount on Canadian natural gas should fall from about $2 today, to between $1.10 to $1.30,\u201d Toronto-based investment firm Ninepoint Partners LP wrote in its 2025 mid-year outlook published last week.<\/p>\n<\/div>\n<\/section>\n

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LNG Canada\u2019s joint-owners \u2014 Shell, Malaysian energy giant Petronas, PetroChina, Mitsubishi Corp. and Kogas \u2014 are currently deciding whether to green-light Phase 2 and Cooper said the partners are closely watching the facility\u2019s startup.<\/p>\n<\/div>\n<\/section>\n

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\u201cWe just want to see all that working: the supply chain, the logistics and how all that works,\u201d Cooper said, adding that the partners will be weighing the cost of expanding the project and the competitiveness of Canadian LNG, as well as other considerations around Canada\u2019s policy environment, concerns over greenhouse gas emissions and input from stakeholders.<\/p>\n<\/div>\n<\/section>\n

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\u201cSo you\u2019ve got one bit, which is (getting) Phase 1 working, and the second bit, which is actually proofing out the economic proposition for Phase 2,\u201d he said.<\/p>\n<\/div>\n<\/section>\n

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A report earlier in June that Petronas was exploring the sale of its Canadian assets \u2014 a claim the company has since emphatically denied \u2014 may have reignited long-standing concerns in Canada\u2019s energy sector over the potential flight of global investment. But Cooper said all five joint-venture partners in LNG Canada remain \u201cvery interested\u201d in the project\u2019s expansion.<\/p>\n<\/div>\n<\/section>\n

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\u201cWe continue to work with our five joint venture partners who invested in Phase 1 and we don\u2019t see that changing at the minute.\u201d<\/p>\n<\/div>\n<\/section>\n

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Prime Minister Mark Carney said Monday that Canada \u201chas what the world needs\u201d in a statement responding to news of the first cargo\u2019s departure.<\/p>\n<\/div>\n<\/section>\n

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\u201cWith LNG Canada\u2019s first shipment to Asia, Canada is exporting its energy to reliable partners, diversifying trade, and reducing global emissions \u00ad\u2014 all in partnership with Indigenous Peoples,\u201d he said. \u201cBy turning aspiration into action, Canada can become the world\u2019s leading energy superpower with the strongest economy in the G7.\u201d<\/p>\n<\/div>\n<\/section>\n

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