New LNG terminal in Canada begins liquefying gas, country set to join exporters

Canada’s new liquefied natural gas (LNG) export terminal, which will be the country’s first major terminal, is nearing completion. The terminal’s operator announced earlier this week that it had begun liquefying gas for export. LNG Canada will not only be the first major export terminal in Canada, but also the first export terminal on the west coast of North America. Exports of liquefied gas are expected to begin soon, although it will take some time for the terminal to ramp up to full capacity.

The global liquefied gas market is expected to see an influx of new supply in the coming months and years. One of the new projects is the LNG Canada terminal, which is expected to begin exports in the coming days or weeks. The terminal’s operator has already started liquefying gas not intended for testing the new terminal’s operations, but for export.

The ramp-up of the new terminal, which is expected to supply mainly the Asian market because of its location, comes at a turbulent time. The recent escalation of the conflict between Israel and Iran led to a sharp rise in natural gas prices amid the risk of supply restrictions. Specifically, there was a threat that the Strait of Hormuz could be closed, disrupting deliveries from Qatar to the global LNG market. Qatar supplies around a fifth of all liquefied gas on the global market.

The new LNG Canada terminal will be the first major project to export liquefied natural gas from Canada. Once completed, it is expected to have an annual capacity of 14 million tonnes of LNG, or just under 20 billion cubic metres of gas, according to Reuters. No tanker has yet loaded liquefied gas at the terminal, but exports are expected to begin around the middle of this year, according to the operator. LSEG data show that the Gaslog Glasgow tanker is already heading to the terminal and is expected to arrive on 29 June.

An expansion that would double the terminal’s export capacity is also under consideration, although no decision has yet been made. The investor consortium is expected to reach a final investment decision sometime next year.