Canada has officially joined the ranks of LNG-exporting nations. The LNG Canada facility in Kitimat, British Columbia, began producing liquefied natural gas early Sunday morning, marking a milestone for the country’s energy ambitions.

“At 4 a.m. local time LNG Canada started producing its first LNG,” a source familiar with the startup told Reuters.

Led by Shell in partnership with Petronas, PetroChina, Mitsubishi, and Kogas, the project is the first large-scale LNG facility in Canada — and the only one in North America with direct access to the Pacific. That gives it a critical edge in reaching fast-growing Asian energy markets.

Initial production is coming from “Train 1,” which has a nameplate capacity of 5.6 million metric tonnes per year. However, according to sources, technical issues mean the unit is running at only half capacity for now.

When fully operational, the facility is expected to export up to 14 million metric tonnes annually.

Shipping activity is already ramping up. The LNG carrier Gaslog Glasgow is expected to arrive at the Kitimat port on June 29 to pick up the first shipment, with exports likely to begin in early July.

As Canada gains a foothold in the LNG export business, some traders say this could reduce the country’s dependence on U.S. markets. In 2024, Canada exported 8.6 billion cubic feet of natural gas per day to the U.S., but those numbers may dip as more volumes head overseas.

LNG Canada has not yet issued a public statement on the launch.