Published by Global Banking & Finance Review®
Posted on June 17, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleShell's LNG Canada project is appealing due to its use of the AECO price index, which is cheaper than the Henry Hub. The project is set to produce 14 MTPA for export.
By Florence Tan and Ashley Tang
KUALA LUMPUR (Reuters) -Buyers are attracted to Shell's LNG Canada project because it uses the Canadian Alberta Energy Company (AECO) price index as a benchmark, which is lower than the Henry Hub price in the U.S., the company's chief executive said on Tuesday.
"What is particularly attractive about LNG Canada in today's world, retrospectively, is the AECO indexation," Shell CEO Wael Sawan said at the Energy Asia conference, adding that there will be more supply of AECO gas at lower prices.
"And so that differential between AECO and Henry Hub, not to mention the proximity to Asia, all of that makes it a particularly attractive project, and it will be one of the lowest carbon projects anywhere in the world," he said.
The AECO Storage Hub price on Monday was at 96.6 Canadian cents (71.4 U.S. cents) per million British thermal units, according to data from SNL Financial. That compares with a Henry Hub futures price of $3.746 per MMBtu.
The LNG Canada project, the country's first LNG export facility, is expected to produce 14 million metric tons per annum (MTPA) for export. The plant is expected to produce first LNG this month.
LNG Canada is a joint venture of Shell, Petronas, PetroChina, Mitsubishi Corporation and Korea Gas.
(Reporting by Florence Tan and Ashley Tang, Writing by Emily Chow; Editing by Jacqueline Wong and Christian Schmollinger)
The LNG Canada project is attractive because it uses the AECO price index, which is lower than the Henry Hub price, making it economically favorable.
The LNG Canada project is expected to produce 14 million metric tons per annum (MTPA) for export.
The LNG Canada project is a joint venture involving Shell, Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas.
The plant is expected to produce its first LNG this month.
Shell CEO Wael Sawan discussed the LNG Canada project at the Energy Asia conference.
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