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 read

· Last updated: January 20, 2026

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Shell-led LNG Canada's second processing unit still down, sources say
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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

LNG Canada's Train 2 Delays Continue Amid Restart Efforts

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)

Key Takeaways

  • LNG Canada's Train 2 remains down nearly a month after start-up.
  • A restart was scheduled for December 1, lasting two weeks.
  • LNG Canada is the first major LNG export facility in Canada.
  • The facility aims to export 14 million metric tonnes of LNG annually.
  • LNG Canada is a joint venture involving Shell and other global partners.

Frequently Asked Questions

What is LNG?
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.
What is a processing unit in LNG facilities?
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.
What is a joint venture?
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.
What are technical issues in LNG production?
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.
What is the significance of LNG exports?
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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