LNG Canada begins cooling down of the plant as a final step to producing LNG

Two people have confirmed that LNG Canada is cooling down its Kitimat liquefied gas plant, British Columbia. This is a last step before the company begins producing super-cooled gas.

LNG Canada will be the first LNG export facility in Canada. It is expected to export 14 million metric tons per year (MTPA).

People said that the company began using refrigerants on Tuesday as part of its cooling process. Tomorrow, it is expected to add natural gas to the plant.

The cooling of an LNG plant prior to its production will help to reduce the amount of gas that is released during the initial startup and ensure the plant is operating according to specification as the machinery of the facility expands and contracts when natural gas is introduced.

The Maran Gas Roxana, which arrived in Canada on April 1, delivered a cargo to the plant that would be used for the cooling process.

LNG Canada has previously stated that the cooling down process could take as long as three weeks.

LNG Canada announced on Tuesday that equipment testing was going well, and that the company is on track to deliver the first cargoes in the middle of 2025.

Traders have predicted that Canadian gas exports will likely decrease once the plant is in service.

The plant provides Canadian energy companies with another outlet to sell their fuels, which facilitates sales into other countries. For the time being, the U.S. remains the sole outlet for Canadian natural gas.

According to U.S. Energy Information Administration data, Canada will export about 8.6 billion cubic foot per day (bcfd), up from 8.0 bcfd a year ago and an average 7.5 bcfd for the five previous years (2018-2022). This compares to a record 10.4 billion cubic feet per day (bcfd) in 2002. LNG Canada is a joint-venture between Shell, Petronas, PetroChina Mitsubishi Corporation, and Kogas. Reporting by Curtis Williams, Houston; editing by Andrea Ricci

(source: Reuters)