Latest news with #LNGCanada
CBC
3 hours ago
- Business
- CBC
Shell-led LNG Canada faces problems as it ramps up production, sources say
Shell-led LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, with one LNG tanker diverting away from the facility without the super-chilled fuel in recent days, according to four sources and LSEG ship tracking data. The plant is the first major LNG export facility in Canada and the first on the west coast of North America, providing direct access to Asia, the world's largest LNG market. The facility is expected to convert about 2 billion cubic feet of gas per day to LNG when fully operational, which market participants have hoped will boost Canadian natural gas prices. Western Canadian natural gas prices remain depressed, however, due to a persistent supply glut that has not yet been drawn down by fresh demand from LNG Canada's July 1 startup. The daily spot price at the Alberta Energy Company (AECO) storage hub closed at $0.22 per mmBtu on Tuesday, compared to the U.S. Henry Hub benchmark price of $3.12, according to LSEG data. LNG Canada, which took almost seven years to be built, has been operating at less than half the capacity of its first plant, also called a train, two of the four sources said. The facility's Train 1 has experienced technical issues with a gas turbine and with a refrigerant production unit (RPU), according to two other industry sources. The sources all spoke on condition of anonymity, because the information was not public. In response, a LNG Canada spokesperson said a new-build facility at the joint venture's size and scale may face operational setbacks as it ramps up production and stabilizes. There has been at least one diversion by Shell of an empty LNG vessel to Peru, while other tankers remain close to the facility, LSEG ship tracking data showed. Ferrol Knutsen, a 170,520-cubic-metre LNG tanker, was signaling that it was headed to the Kitimat port but then changed directions and is now off the coast of California on its way to Peru, according to LSEG ship tracking data. LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina, Japan's Mitsubishi Corp and South Korea's KOGAS. When fully operational, LNG Canada will have a capacity to export 14 million metric tonnes per annum, according to company statements. So far, the facility has exported four cargoes, including its first shipment on July 1. Another shipment is expected in the coming days, the LNG Canada spokesperson said. The pace of exports from the plant will increase as it moves through early operations and into a steady shipping cadence, the spokesperson said. "In regular operations in Phase 1, we anticipate loading one export cargo from our facility every two days," the spokesperson added.
Business Insider
10 hours ago
- Business
- Business Insider
Precision Drilling sees global energy demand tempered by geopolitical events
The company said, 'Near-term expectations for global energy demand growth have been tempered by several geopolitical events including OPEC+ easing of curtailments, trade and tariff uncertainty, and international conflicts. However, we believe the long-term fundamentals for energy is positive, driven by economic growth, increasing demand from emerging economies, and new demand for power. In Canada, additional takeaway capacity for both oil and natural gas continues to support Canadian activity. LNG Canada made its first shipment at the beginning of July, and we expect demand for our Super Triple drilling rigs could exceed current supply once the facility achieves its run rate capacity. The Trans Mountain pipeline expansion continues to support heavy oil production, driving our Super Single rig utilization near full capacity. While Canadian drilling fundamentals are strong, tariff and commodity price uncertainty have caused some producers to defer some work until later this year. We currently have 63 rigs operating and as these uncertainties resolve, we expect Canadian customer demand for oil targeted drilling to further strengthen. In the U.S., while the oil rig count continues to decline, we are beginning to see natural gas drilling increase as customers are becoming more constructive on LNG off-take and AI demand. We currently have 36 rigs active in the U.S. and expect to increase our activity for the remainder of the year as we capitalize on emerging opportunities in natural gas basins such as the Haynesville and Marcellus. Internationally, we have seven active rigs with five in Kuwait and two in the Kingdom of Saudi Arabia and expect this same level of activity for the remainder of the year. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028. We continue to look for opportunities to leverage our international expertise. As the premier well service provider in Canada, the outlook for this business remains strong, driven by increased takeaway capacity from the Trans Mountain pipeline expansion and LNG Canada, and our High Performance, High Value service offering. We expect activity to improve in the second half of the year as customers move ahead with projects previously deferred.' Elevate Your Investing Strategy:
New Straits Times
12 hours ago
- Business
- New Straits Times
Shell-led LNG Canada faces problems as it ramps up production
REUTERS LONDON/HOUSTON/CALGARY: Shell-led LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, with one LNG tanker diverting away from the facility without the superchilled fuel in recent days, according to four sources and LSEG ship tracking data. The plant is the first major LNG export facility in Canada and the first on the west coast of North America, providing direct access to Asia, the world's largest LNG market. The facility is expected to convert about 2 billion cubic feet of gas per day (bcfd) to LNG when fully operational, which market participants have hoped will boost Canadian natural gas prices. Western Canadian natural gas prices remain depressed, however, due to a persistent supply glut that has not yet been drawn down by fresh demand from LNG Canada's July 1 startup. The daily spot price at the Alberta Energy Company (AECO) storage hub closed at US$0.22 per mmBtu on Tuesday, compared to the U.S. Henry Hub benchmark price of US$3.12, according to LSEG data. LNG Canada, which took almost seven years to be built, has been operating at less than half the capacity of its first plant, also called a train, two of the four sources said. The facility's Train 1 has experienced technical issues with a gas turbine and with a Refrigerant Production Unit (RPU), according to two other industry sources. The sources all spoke on condition of anonymity because the information was not public. In response, a LNG Canada spokesperson said a new-build facility at the joint venture's size and scale may face operational setbacks as it ramps up production and stabilizes. There has been at least one diversion by Shell of an empty LNG vessel to Peru, while other tankers remain close to the facility, LSEG ship tracking data showed. Ferrol Knutsen, a 170,520 cubic meters LNG tanker, was signaling that it was headed to the Kitimat port but then changed directions and is now off the coast of California on its way to Peru, according to LSEG ship tracking data. LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina, Japan's Mitsubishi Corp and South Korea's KOGAS. When fully operational, LNG Canada will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. So far the facility has exported four cargoes, including its first shipment on July 1. Another shipment is expected in the coming days, the LNG Canada spokesperson said. The pace of exports from the plant will increase as it moves through early operations and into a steady shipping cadence, the spokesperson said. "In regular operations in Phase 1, we anticipate loading one export cargo from our facility every two days," the spokesperson added.
Reuters
15 hours ago
- Business
- Reuters
Exclusive: Shell-led LNG Canada faces problems as it ramps up production, sources say
LONDON/HOUSTON/CALGARY, July 29 (Reuters) - Shell-led (SHEL.L), opens new tab LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, with one LNG tanker diverting away from the facility without the superchilled fuel in recent days, according to four sources and LSEG ship tracking data. The plant is the first major LNG export facility in Canada and the first on the west coast of North America, providing direct access to Asia, the world's largest LNG market. The facility is expected to convert about 2 billion cubic feet of gas per day (bcfd) to LNG when fully operational, which market participants have hoped will boost Canadian natural gas prices. Western Canadian natural gas prices remain depressed, however, due to a persistent supply glut that has not yet been drawn down by fresh demand from LNG Canada's July 1 startup. The daily spot price at the Alberta Energy Company (AECO) storage hub closed at $0.22 per mmBtu on Tuesday, compared to the U.S. Henry Hub benchmark price of $3.12, according to LSEG data. LNG Canada, which took almost seven years to be built, has been operating at less than half the capacity of its first plant, also called a train, two of the four sources said. The facility's Train 1 has experienced technical issues with a gas turbine and with a Refrigerant Production Unit (RPU), according to two other industry sources. The sources all spoke on condition of anonymity because the information was not public. In response, a LNG Canada spokesperson said a new-build facility at the joint venture's size and scale may face operational setbacks as it ramps up production and stabilizes. There has been at least one diversion by Shell of an empty LNG vessel to Peru, while other tankers remain close to the facility, LSEG ship tracking data showed. Ferrol Knutsen, a 170,520 cubic meters LNG tanker, was signaling that it was headed to the Kitimat port but then changed directions and is now off the coast of California on its way to Peru, according to LSEG ship tracking data. LNG Canada is a joint venture between Shell, Malaysia's Petronas ( opens new tab, PetroChina ( opens new tab, Japan's Mitsubishi Corp (8058.T), opens new tab and South Korea's KOGAS ( opens new tab. When fully operational, LNG Canada will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. So far the facility has exported four cargoes, including its first shipment on July 1. Another shipment is expected in the coming days, the LNG Canada spokesperson said. The pace of exports from the plant will increase as it moves through early operations and into a steady shipping cadence, the spokesperson said. "In regular operations in Phase 1, we anticipate loading one export cargo from our facility every two days," the spokesperson added.
Winnipeg Free Press
16 hours ago
- Business
- Winnipeg Free Press
‘Canada will win' race to bring LNG to Asian markets, B.C. Premier David Eby says
KITAMAAT VILLAGE – British Columbia Premier David Eby says Canadian values will help the country 'win this race' to deliver liquefied natural gas to Asian markets, even as U.S. President Donald Trump sets his sights on developing the industry in Alaska. Eby told a news conference on Tuesday that Canada is a reliable partner, which can deliver the fuel to Asia in a direct, affordable way, while Trump has been 'insulting and demeaning' towards other countries and insists his only concern is America. The premier's remarks came as his government announced a $200-million agreement with the Haisla Nation to support infrastructure for the Cedar LNG project, a floating liquefied natural gas terminal that will be located near Kitimat on B.C.'s northern coast. He says the funding will help the nation build infrastructure, including a new electricity transmission line and distribution lines to power the facility. Eby hailed Cedar LNG as the world's first Indigenous majority-owned liquefied natural gas facility, saying it represents a 'model' for resource development that will help diversify the Canadian economy and reduce reliance on the United States. The premier says Trump has meanwhile shown he will make 'arbitrary and extrajudicial decisions on a whim,' announcing them through his own social media platform, Truth Social, and cannot be relied on as a trading partner. 'If you are a government in Asia looking for reliable energy sources that you can count on and a partner that you can count on, that isn't suddenly going to cut off your access to energy, that isn't suddenly going to massively increase the tariffs on the energy or taxes on the energy that you're purchasing, then nobody, nobody would be looking at the United States right now,' the premier says. He noted the first large-scale shipment of fuel from the LNG Canada facility, another export terminal in Kitimat, departed for Asia earlier this summer. Eby's comments come a few weeks after Alaska Senator Dan Sullivan and Governor Mike Dunleavy issued a statement applauding Trump's support for the natural gas industry in the state during a meeting with Japanese Prime Minister Shigeru Ishiba. The U.S. lawmakers' statement quotes Trump as saying 'Japan will soon begin importing historic new shipments of clean American liquefied natural gas in record numbers' and discussing a 'joint venture' between the two countries. Sullivan says in the statement that Alaskans are ready to work with Trump and Japan to 'realize a dream (they) have been pursuing for almost half a century.' 'With (Trump's) leadership, we will get the Alaska LNG Project built, which will create thousands of good-paying jobs, reinvigorate our American steel industry, significantly reduce our trade deficit in Asia, and deliver clean-burning Alaska gas for Americans, our military, and our allies in the Asia-Pacific, like Japan,' the statement says. The Haisla Nation has partnered with Calgary-based Pembina Pipeline Corp. for the Cedar LNG project, which is scheduled to come online in late 2028. A statement from Eby's office and the Energy Ministry says the provincial funding complements $200 million in federal funding announced earlier this year. Monday Mornings The latest local business news and a lookahead to the coming week. The BC Green Party issued a statement later Tuesday saying the government's decision to provide funding to another liquefied natural gas project is 'irresponsible' and prolongs the province's dependence on fossil fuels. 'Fossil fuel expansion contradicts achieving the province's legislated emissions reduction targets — which we have already failed to meet,' says the statement from interim Green Leader Jeremy Valeriote. 'The government's continued inaction when it comes to the climate, and their disingenuous greenwashing of LNG as 'clean' energy is a distraction from their climate action failures,' it says. Valeriote says the province should instead invest in economic pathways towards long-term sustainability, public health and community well-being. This report by The Canadian Press was first published July 29, 2025.
