The Gaslog Glasgow eased away from Kitimat鈥檚 waterfront today, launching Canada鈥檚 entry into large-scale LNG exports with the country鈥檚 first major cargo now bound for international markets. The departure marks the start of operations at LNG Canada鈥檚 new export terminal and signals a new phase both in Canada's energy sector, and the industrial and community life of B.C.'s Northwest.
鈥淭oday is a historic moment for LNG Canada and our five joint venture participants, as well as the Haisla Nation, the District of Kitimat and all of Canada,鈥� said Chris Cooper, president and CEO of LNG Canada. 鈥淲e began with a clear vision: to work side-by-side with First Nations and local communities as the catalyst for a thriving new energy sector in Canada, and to set a new standard for safe and responsible LNG production.鈥�
Following five years of construction, the LNG Canada terminal began commissioning this spring and produced its first liquefied natural gas on June 23. The Gaslog Glasgow had been berthed at the facility for days in anticipation of the inaugural shipment. The facility is a long-life asset that will initially export LNG from two processing units or 鈥渢rains鈥� with a total capacity of 14 million tonnes per year.
B.C. Premier David Eby, recently back from a 10-day trade mission to Asia that included talks on energy transitions with companies such as Malaysian oil and gas giant PETRONAS鈥攈older of a 25 per cent stake in LNG Canada鈥攁nd Korea Gas Corporation, which is set to receive the inaugural shipment, said the cargo proves the province can translate resource potential into long-term economic strength.
鈥淎t a time when B.C. jobs are under attack, it鈥檚 more important than ever that we get our resources to global markets and reduce our reliance on the United States,鈥� Eby said. 鈥淟NG Canada鈥檚 first cargo shipment to Asia marks a major milestone in our efforts to build a stronger, more diversified economy that creates those good jobs and makes us all better off.鈥�
Prime Minister Mark Carney added that Canada now has a chance to lead the G7 in both energy and economic performance. 鈥淐anada has what the world needs. With LNG Canada鈥檚 first shipment to Asia, Canada is exporting its energy to reliable partners, diversifying trade, and reducing global emissions 鈥� all in partnership with Indigenous Peoples,鈥� he said.
At peak construction, between 7,000 and 9,000 people worked on site. Across Phase 1鈥攊ncluding the terminal and Coastal GasLink pipeline鈥攎ore than 50,000 Canadians contributed. LNG Canada awarded over $5.8 billion in contracts and subcontracts to B.C. businesses and local First Nations.
Among the largest contracts was a $500-million agreement with HaiSea Marine, a joint venture between Seaspan and the majority-owner Haisla Nation. HaiSea Marine provides low-emission and battery-electric tugboat services for LNG Canada鈥檚 marine operations.
鈥淐ongratulations to our partner LNG Canada on this monumental day,鈥� said Haisla Nation Chief Councillor Crystal Smith. 鈥淭his milestone is a testament to what can happen when industry elevates and respects the role of Indigenous communities in major projects. So much has changed for our community since that first meeting. Our people, our country and the world are better off today, and will be for decades to come.鈥�
Kitimat mayor Phil Germuth underscored how the project鈥檚 planning and execution, saying he looks forward to the town of 8,000 becoming the LNG capital of Canada.
鈥淲hen you have such a large project in such a small community, it鈥檚 been really amazing how LNG Canada did all the pre-planning to make sure any negative effects would be as small as possible,鈥� Germuth said. 鈥淎ll the efforts and resources they put in, even before they started construction, were about making sure the community was going to be taken care of.
鈥淸It is] a great showcase for industry getting it right,鈥� he said.
LNG Canada is jointly owned by Shell, PETRONAS, PetroChina, Mitsubishi Corporation and Korea Gas Corporation. The terminal is expected to employ between 350 and 500 people during full operations.
The company is also assessing a potential Phase 2 that could double output to 28 million tonnes a year. For now, Cooper said the priority is stable, safe delivery from Phase 1.
鈥淪ecure supply of energy can never be taken for granted,鈥� he said. 鈥淧hase One presents that opportunity, and Phase Two could double down on it鈥攊f competitiveness, cost, greenhouse gas emissions and stakeholder alignment come together.鈥�
The launch of LNG Canada鈥檚 operations follows years of collaboration with local communities and Indigenous partners. The facility has already made over $13 million in investments for Kitimat, Terrace and surrounding First Nations communities, and more than $10 million has been committed to training programs focused on trades and apprenticeships.
鈥淚t would be kind of foolish not to try and leverage that again,鈥� Cooper said, referring to the potential for Phase 2. 鈥淚 come from an apprenticeship at age 16, so I tend to look at the workers and the pride in the build. This is the iconic moment鈥攚hen our first cargo sails away. Everyone can be proud of their part in that. I鈥檓 just a spokesperson for tens of thousands of people who have worked on this for over a decade.鈥�
