Image credits : The Globe and Mail

LNG Canada is a liquefied natural gas (LNG) export terminal located in Kitimat, in the province of British Columbia, Canada.

In 2018, the project reached final investment decision with a total investment of approximately US$40 billion, funded by its five joint-venture partners : Shell, Petronas, PetroChina, Mitsubishi and Korean Gas.

The facility is designed to export Canadian natural gas primarily to Asian markets. The project was developed in response to structural oversupply in the Canadian natural gas market. Natural gas production in Canada, particularly in Western Canada, exceeds North American demand, which has periodically resulted in depressed domestic prices. LNG Canada provides an export outlet for this surplus production, enabling access to higher-value international markets and diversifying Canada’s natural gas exports beyond the United States.