Canada's First LNG Tanker Sets Sail from Kitimat: A Historic Export Begins!

Kitimat, British Columbia, Canada - On July 1, 2025, a significant milestone for Canada’s energy industry was marked as the tanker GasLog Glasgow departed from Kitimat, British Columbia, carrying the nation’s inaugural cargoes of liquefied natural gas (LNG) to Asia. This pioneering venture is spearheaded by LNG Canada, which represents the largest private-sector investment in Canadian history, tallying up to a whopping $40 billion. This investment encompasses not only the port operations but also the extensive gas fields located in northeast B.C. and the pipeline that connects them.

The significance of this event is not lost on local leaders. Kitimat Mayor Phil Germuth described the project, a decade in the making, as poised to bring a long-term economic boost to the area. Notably, the first phase of LNG Canada is designed to produce an impressive 14 million tonnes of gas annually, with discussions already swirling about a potential expansion to double that output.

How It All Works

The GasLog Glasgow undertook a carefully navigated 15-hour journey thanks to the expertise of British Columbia Coast Pilots. Ensuring safe travel while minimizing environmental impacts was paramount. These LNG cargoes are cooled to a brisk -162°C to facilitate transportation in specially designed tankers, making them highly competitive in the Asian markets where prices are notably higher than their North American counterparts.

As CBC highlights, Canada’s previous reliance on pipeline exports to the U.S. has been fundamentally reshaped by the LNG Canada project, which opens the door to new markets and opportunities. As CEO Chris Cooper remarked on this historic departure, the startup of LNG Canada comes at a crucial time when diversifying export markets is necessary due to ongoing tariffs and other trade-related challenges with the United States.

The Broader Context

This venture comes against the backdrop of rising global energy demands and escalating prices. Since late 2008, natural gas prices in Asia and Europe have consistently surpassed those in North America, fostering an environment ripe for LNG exports. According to the Canada Energy Regulator, prices in Asia can reach anywhere from $7 to $15 per MMBtu, and spiked to a staggering $40 per MMBtu following geopolitical turmoil caused by Russia’s invasion of Ukraine in February 2022. Given the relatively low production costs of natural gas in North America, urgent momentum is building behind LNG projects across Canada.

Western Canada stands out as strategically positioned, being closer to major LNG importers in northeastern Asia—ultimately reducing shipping costs compared to U.S. Gulf Coast terminals. While challenges exist, such as high construction costs and navigating difficult terrain, several projects under construction promise to reshape the Canadian energy landscape.

Upcoming Projects

With the launch of LNG Canada, a wave of additional LNG projects is also in the pipeline. Here’s a quick look at some notable ones:

This explosion in projects not only highlights the sector’s potential but also introduces sustainability discussions, as many initiatives focus on reducing greenhouse gas emissions through electrification and renewable energy sources.

As Canada steps onto the global stage of LNG exports, there’s much to watch for in the years ahead. The recent shipment by GasLog Glasgow may just be the beginning of a new chapter in Canadian energy history.

For further insights into Canada’s growing LNG market, you can read more about the topic at Canada Energy Regulator.