The 7mn t/yr second train at the 14mn t/yr LNG Canada export terminal will ramp up over this quarter, Shell said in its quarterly results call today.
The ramp-up is "days away", chief executive Wael Sawan said, although it is unclear exactly when the first cargo would load from the second train. The terminal operator said earlier this week that planned flaring associated with the "final stages" of start-up will last for two weeks.
But Shell's ability to rely on the cargoes for trading once the terminal is fully up and running will be more into the second half of next year, Shell's chief financial officer Sinead Gorman said.
The terminal's first train is yet to reach consistent production at full capacity, although average weekly loadings are approaching full capacity, judging by loading data from Kpler. The 174,000m³ New Green was docked at the terminal today, only two days after the most recent loading onto the 174,000m³ New Brave. If the New Green were to load today, it would be the shortest gap between two loadings so far.
Shell has gas production feeding directly to LNG Canada, but has turned down some production in favour of buying from the AECO hub, where prices have reached negative levels so far this year.
Shell reached capacity of around 100,000 boe/d (around 600,000mn ft³/d) at its Groundbirch feedgas site, but turned production down to around 70,000-75,000 boe/d because it could buy cheaper gas from third parties than the marginal additional cost of production, Sawan said.
Long-term cost of supply from Groundbirch is around $2/mn Btu, Shell said in 2018 when it took a final investment decision at LNG Canada.
AECO day-ahead prices have reached negative levels this year, most recently in September.
