Finance
Shell-led LNG Canada's second processing unit still down, sources say
Published by Global Banking & Finance Review®
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
LNG Canada's Train 2 remains down, affecting export targets. A restart was planned for December 1, with updates expected soon.
By Curtis Williams
HOUSTON, Dec 4 (Reuters) - Shell-led LNG Canada's second processing unit, known as Train 2, remains down nearly a month after its initial start-up, two sources told Reuters.
The company said on November 20 that a re-start had been scheduled for December 1 and would last about two weeks.
A spokesperson for LNG Canada said on Thursday it expects to provide an update later this week.
Located in Kitimat, British Columbia, the complex is the first major LNG export facility in Canada and the first on North America's West Coast with direct access to Asia, the world's largest market for the liquid fuel. When fully operational, LNG Canada is expected to export 14 million metric tonnes of LNG per year.
Since starting up in July, the plant has had challenges, with its first train experiencing technical issues involving a gas turbine and refrigerant production unit. The company on November 6 announced it had started production from its second train, but data from financial firm LSEG has not shown an increase in exports since then.
In both October and November, LNG Canada exported just above half a million tonnes of the superchilled gas, the LSEG data showed.
LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina, Japan's Mitsubishi Corp and South Korea's KOGAS.
(Reporting by Curtis Williams in Houston; Additional reporting by Amanda Stephenson in Calgary; editing by Nathan Crooks and Paul Simao)
LNG stands for liquefied natural gas, which is natural gas that has been cooled to a liquid state for ease of storage and transport. It is primarily used for energy generation and heating.
A processing unit in LNG facilities, such as a train, is a section where natural gas is processed and liquefied. Each unit typically has its own equipment for cooling and compressing the gas.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits, losses, and control.
Technical issues in LNG production can include equipment malfunctions, inefficiencies in gas processing, or failures in safety systems, which can delay operations and affect output.
LNG exports are significant as they allow countries to sell natural gas to international markets, enhancing energy security and generating revenue. They are crucial for meeting global energy demands.
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