PETRONAS & PetroChina: Shell’s First Export from LNG Canada

In 2022, CO₂ emissions from burning coal for energy accounted for about 19% of total US energy-related CO₂ emissions according to the EIA.

Liquified natural gas (LNG) is a cleaner substitute for coal, producing 40% less CO₂ according to National Grid.

While not as clean as renewable energy, LNG could support these intermittent resources while they continue to scale and become more reliable with less environmental impact than coal. 

Shell Canada Energy has announced the first cargo of LNG has left the LNG Canada facility, making it the first of Canada's large scale LNG export facilities.

LNG Canada comprises five global energy companies: Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. 

The company has hit its goal of making the first export by the middle of 2025.

Cederic Cremers, President of Integrated Gas at Shell, says: "LNG Canada grows our leading integrated gas portfolio, providing a reliable supply of LNG to markets, most notably in Asia. 

“We expect that supplying LNG will be the biggest contribution Shell will make to the energy transition over the next decade, and projects like LNG Canada position our portfolio to achieve this.”

What is liquified natural gas?

Natural gas needs to go through a process to remove any impurities like water, carbon dioxide and other materials before liquefaction.

Using four powerful gas turbines, natural gas is cooled to -162°C and as it is cooled the gas transitions into a liquid state.

LNG is then stored at near atmospheric pressure and transported to specialised tankers designed to keep temperatures at an extreme low.

Generating that much energy also produces a lot of heat – some of it is reused to warm parts of the plant and the rest is released.

Shell created large cooling towers, removing access heat using water that is continuously cooled and reused in a loop.

Hadi Quazi, Joint Venture Asset Manager at Shell, says: “Think of LNG Canada as a giant refrigerator, our job is to cool natural gas from ambient temperatures down to -162°C so it can be shipped as a liquid.

“That cooling process demands tremendous amounts of energy.

“Like the Canadian Pacific Railway, which stretches from coast to coast, LNG Canada connects the country in a new way – from the gas fields to the global market,” 

“It creates a legacy for workers, local and First Nations communities and Canada.”

What is LNG Canada’s goal?

LNG Canada has access to abundant low-cost Canadian natural gas, using its export facility in Kitimat, British Columbia.

Its plans are to:

• Provide security of supply for global markets that rely on Canada’s natural gas reserves to fuel economies
• Reduce global GHG emissions as natural gas replaces the use of coal
• Bring significant economic growth and stability to northern British Columbia communities and all of Canada

What does this mean for the future?

LNG Canada has now put itself on the map to be destined for global markets. 

While still a fossil fuel that produces carbon emissions, transitioning from coal to LNG is an important step in the energy transition that can reduce emissions from energy.

LNG can be transported efficiently as it does not rely on pipeline infrastructure, making it a more reliable source for meeting fluctuating energy demands while renewable sources and energy storage scales up.

Jenna Lapointe, a Petrophysicist at Shell, says: "There is something extraordinary about seeing the first boat come into the harbour. 

“We have been on this journey for years from reservoir to the pipe, from pipe to the plant and now we are sending the LNG to the world."