Canada’s first liquefied natural gas (LNG) export is a highly anticipated milestone, with LNG Canada targeting an imminent start for its Kitimat, British Columbia facility. Each day brings the project closer to this goal, with a recent report from Reuters suggesting that first LNG could come as soon as this weekend.
As LNG Canada prepares for first export, its major stakeholder Shell, is ramping up licensing activity via Shell Canada in the Montney natural gas play, a key supply source for the LNG terminal. In the first half of 2025, Shell Canada secured 106 new Montney licences (Figure 1), a substantial increase compared to its licensing activity in recent years. This surge signals potential for expanded drilling in the gas-rich Montney formation, which spans parts of British Columbia and Alberta. Industry observers are closely monitoring when these licences will translate into new wells to support LNG Canada’s feedstock needs.
LNG Canada, a joint venture led by Shell alongside Petronas, PetroChina, Mitsubishi Corporation, and Korea Gas Corporation, is poised to position Canada as a global LNG exporter. The project’s progress is critical for meeting growing international demand for LNG.
Figure 1 – Shell Canada Montney Licences
