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Shell-led LNG Canada encounters technical issues during startup of Kitimat plant in British Columbia. Shell-led LNG Canada (SHEL.L) has encountered technical issues while ramping up production at its Kitimat LNG plant, with an LNG tanker diverting from the plant in recent days without super-chilled fuel, according to four sources and London Stock Exchange ship tracking data. The plant is Canada's first large-scale LNG export facility and the first on the west coast of North America, with direct access to Asia, the world's largest LNG market. Once fully operational, the facility is expected to convert approximately 2 billion cubic feet of natural gas per day into LNG, which market participants hope will boost Canadian natural gas prices. However, natural gas prices in Western Canada remain depressed due to a persistent oversupply, which has yet to be alleviated by new demand following the July 1 startup of LNG Canada. Data from the London Stock Exchange showed that the daily spot price at the Alberta Energy Company (AECO) storage hub closed at $0.22 per million British thermal units (MMBtu) on Tuesday, compared to $3.12 at the U.S. Henry Hub benchmark. Two of four sources said LNG Canada, which took nearly seven years to build, is currently operating at less than half the capacity of its first plant, also known as a train. According to two other industry sources, the facility's Unit 1 unit experienced technical issues with its gas turbine and refrigerant production unit (RPU). All sources requested anonymity because the information is not public. An LNG Canada spokesperson said a new facility of the size and scale of the joint venture could face operational setbacks as it ramps up production and stabilizes. London Stock Exchange ship tracking data shows that Shell diverted at least one empty LNG vessel to Peru, while other tankers remain near the facility. The Ferrol Knutsen, a 170,520 cubic meter liquefied natural gas carrier, signaled it was heading to Kitimat Port but then changed course and is now heading off the California coast towards Peru, according to London Stock Exchange ship tracking data. (Refinitiv)