Asked about the LNG Canada start-up during Shell’s first-quarter earnings call on Friday, Gorman said that Shell is “really pleased with the progress so far.”
“And of course, you saw the commissioning cargo come in to be able to test all of the different aspects of the facility,” she said.
Last month, the 173,400-cbm LNG carrier, Maran Gas Roxana, arrived in Kitimat with a cargo of LNG from Australia.
According to its AIS data provided by VesselsValue, Maran Gas Roxana left Kitimat during the weekend after it unloaded the cool-down cargo.
The cargo is being used for the start-up and commissioning process in advance of LNG Canada’s operations.
“We’re still on track, of course, for the first cargo intended in the middle of this year,” Gorman said.
“I won’t comment on earnings because, of course, from our perspective, what we’re really interested in is not the first cargo. We’re interested in when it ramps up, because by the time that’s when it really starts to have a sizable impact into our numbers, both in terms of liquefaction volumes, but actually both earnings and cash. So I’m much more interested in where we get to towards the end of the year,” she said.
Shell CEO Wael Sawan added that the facility consists of two trains.
“So you’re going to have the first train starting up, and then there’s a lag until you get to the second train. So, I think you will see more of that flow, of course, coming through and the earnings impact in due course,” he said.
LNG Canada is Canada’s first large LNG export facility.
One of the largest private investments in Canadian history, the plant will initially produce 14 million tonnes per annum (mtpa) LNG for export.
With a proposed Phase 2 expansion, Shell and its partners plan to double the terminal’s capacity to 28 mtpa.
Besides operator Shell, other partners in the project include Malaysia’s Petronas, PetroChina, Japan’s Mitsubishi Corporation, and South Korea’s Kogas.
Contractor JGC Fluor is constructing the first phase of the project.
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