LNG Canada Boosts Exports to Asia Amid Iran War Concerns
KITIMAT, British Columbia – LNG Canada, a Shell-led venture, is significantly increasing its liquefied natural gas (LNG) exports to Asia as the conflict in Iran threatens global supply, according to data from LSEG. The facility, which began operations in June 2025, has already surpassed half of its February export volume in the first eleven days of March 2026, shipping five cargoes to Japan, South Korea, and the Philippines. A sixth shipment is scheduled to depart Tuesday.
The Kitimat, British Columbia plant is currently operating near its full capacity of 14 million metric tons per year, exporting just under 1.2 million metric tons per month. More than 400,000 tons have been loaded this month alone. A company spokesperson confirmed the facility is continuing to “advance early operations safely and responsibly” and anticipates a 58th cargo to depart soon.
The increased output comes as global markets scramble to adapt following disruptions to LNG supply. Qatar, a major LNG supplier providing roughly 20% of the globally traded LNG, was forced to halt production and declare force majeure after the conflict blocked tankers from transiting the Strait of Hormuz.
“They are further ramping up activity to push toward full capacity, as well as trying to make a quick surge in LNG output to get more LNG on the water to Asia and take advantage of higher prices in the region,” said Martin King, an analyst with RBN Energy.
LNG Canada represents a key step in bolstering North American gas exports, offering Asian buyers shorter shipping times compared to exporters on the U.S. Gulf Coast. While the plant has faced operational challenges since its launch, production has steadily increased since January.
The ramp-up in LNG Canada’s production is a welcome development for Canadian natural gas producers, who had increased output last summer in anticipation of the facility’s startup. However, a slower-than-expected initial draw-down of supplies led to a temporary slump in domestic prices in September, prompting some companies, including Advantage Energy, to curtail production.
Despite the increased exports, Canadian natural gas prices remain at a discount to the U.S. benchmark. On Tuesday, daily spot prices at the Alberta Energy Company (AECO) storage hub hovered around $2 per million British thermal units, a $1.25 discount to the U.S. Henry Hub benchmark.
