First cargo ship to depart for Asia from LNG Canada export terminal
Canada's LNG Export Journey Begins with Historic Shipment
A significant milestone has been reached in Canada’s energy sector as the GasLog Glasgow, a liquefied natural gas (LNG) tanker, prepares to depart for Asia. This marks the first shipment from the newly constructed LNG Canada export terminal in Kitimat, British Columbia, following nearly seven years of development. The vessel, chartered by Shell PLC, arrived on Saturday and is set to fill up before embarking on its journey, highlighting Canada’s efforts to diversify its energy exports beyond the United States.
Historic Departure from Kitimat
The GasLog Glasgow, measuring 291 meters and registered under the Bermuda flag, is poised to make history as it carries the first batch of LNG produced at the $18 billion terminal. After loading the fuel, the tanker will be escorted by tugboats nearly 300 kilometers out of the Douglas Channel to reach open ocean waters. This journey is expected to take approximately 10 days to reach North Asia, significantly shorter than the 20-day route from the U.S. Gulf Coast via the Panama Canal.
LNG Canada, which received its export license in 2013, began construction in 2018 on a site located on the traditional territory of the Haisla Nation. The project peaked in 2023, employing over 9,000 workers and utilizing large production modules imported from China. Captain Steve Kennedy, president of BC Coast Pilots, noted the importance of the GasLog Glasgow’s arrival, emphasizing that it represents the culmination of over a decade of preparation by government, industry, and local First Nations.
As Canada seeks to enhance its role in the global energy market, LNG Canada is also considering a Phase 2 expansion that could double the plant’s capacity to 28 million tonnes per year. This expansion reflects the growing demand for LNG as a cleaner alternative to coal, despite ongoing debates about the environmental impact of fossil fuels.
Environmental Concerns and Industry Perspectives
While the fossil fuel industry advocates for LNG as a crucial component of the energy transition, climate activists argue for a stronger focus on renewable energy sources. Jens Wieting, a senior policy and science adviser at Sierra Club BC, stated that there are viable alternatives to LNG, such as heat pumps and renewable energy projects, that can mitigate climate impacts. A recent study by Investors for Paris Compliance criticized the perceived benefits of LNG, questioning the clarity of its role in replacing coal.
Conversely, the International Energy Agency (IEA) has reported that LNG produces approximately 25% fewer greenhouse gas emissions than coal when considering all direct and indirect emissions. This data supports the argument that LNG can play a role in reducing overall emissions in the energy sector.
Shell, the largest stakeholder in LNG Canada with a 40% share, is joined by partners including Malaysia’s Petronas (25%), PetroChina (15%), Japan’s Mitsubishi Corp. (15%), and South Korea’s Kogas (5%). The total investment in the LNG Canada project is estimated at $48.3 billion, which encompasses the Kitimat terminal, the Coastal GasLink pipeline, and other related infrastructure.
As Canada continues to develop its LNG capabilities, it faces competition from the United States, which has been more aggressive in establishing LNG export terminals. The first U.S. facility began operations in 2016, and new projects are continually emerging, further intensifying the race in the global energy market.
