Shell-Led LNG Canada Faces Technical Issues During Kitimat Ramp-Up

Shell-led LNG Canada, the first major liquefied natural gas export facility in Canada and on North America's west coast, is facing technical difficulties as it ramps up production at its Kitimat plant. The facility, which started operations on July 1, has been operating at less than half capacity due to problems with a gas turbine and a Refrigerant Production Unit in its first liquefaction train. These issues have caused at least one LNG tanker to divert away from the facility without loading cargo, while others remain nearby. Despite hopes that the project would boost Canadian natural gas prices, the market continues to experience depressed prices due to oversupply. LNG Canada, a $40 billion project and joint venture between Shell, Petronas, PetroChina, Mitsubishi, and KOGAS, is expected to eventually reach an export capacity of 14 million metric tonnes per annum, providing direct access to the Asian LNG market. A company spokesperson acknowledged the typical operational setbacks during ramp-up but anticipates increased export frequency as production stabilizes.