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Proposed Northwest B.C. LNG project secures another major global customer

TotalEnergies, a global supermajor oil and gas company, agrees to buy one-sixth of proposed facility's projected annual production
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The proposed Ksi Lisims LNG plant is planned to be a floating natural gas liquefaction and export facility off the coast of Pearse Island, approximately 56 kilometres north of Prince Rupert.

The proposed Ksi Lisims LNG natural gas liquefaction and export facility is still years away from completion, and the pipeline proposed to feed it is embroiled in legal battles, but the company already has a commitment from a major global customer to buy its product.

TotalEnergies, one of the world's seven supermajor oil and gas companies, recently announced the agreement that would see it purchase two million tonnes per annum (2 Mtpa) of LNG from the proposed facility. That represents one-sixth of Ksi Lisims projected capacity of 12 million tonnes annually.

"This purchase of LNG from the future Ksi Lisims LNG plant will allow us to diversify our LNG portfolio in North America and benefit from competitive LNG supply in Western Canada to better serve our Asian customers, with whom we are developing a significant portfolio of long-term supply contracts", said St茅phane Michel, President of Gas, Renewables & Power at TotalEnergies."

In a parallel deal, France-based TotalEnergies acquired five per cent of Texas-based Western LNG, the Nisga'a Nation's partner in the Ksi Lisims LNG and Prince Rupert Gas Transmission pipeline projects.

"As part of our integrated strategy, we are also pleased to partner with Western LNG to support the development of this very low CO2 emission liquefaction plant project,鈥 Michel continued.

The project aims to be net-zero ready by 2030, contingent on BC Hydro being able to provide the power to run the plant. If the connection to the BC Hydro grid is delayed, the plan is to use energy barges.

In a separate press release Ksi Lisims LNG noted it has been 25 years since the Nation's Treaty with the federal and provincial governments鈥攖outed as the first modern-day, comprehensive treaty in British Columbia鈥攃ame into effect.

"For a quarter of a century, Nisga鈥檃 citizens have waited to see the kind of transformative opportunity our Treaty envisioned. That鈥檚 why it is especially meaningful to see Ksi Lisims LNG progressing steadily toward construction,鈥 said Eva Clayton, president of the Nisga鈥檃 Lisims Government.

鈥淭otalEnergies shares our vision of bringing cleaner energy to the world, advancing Indigenous leadership in the global economy, and sharing our deep commitment to environmental stewardship."

This is the second sale and purchase agreement (SPA) Ksi Lisims has signed following a similar deal with Shell Oil finalized early in 2024. Shell will also offtake two million tonnes per year pending completion of the project.



Thom Barker

About the Author: Thom Barker

After graduating with a geology degree from Carleton University and taking a detour through the high tech business, Thom started his journalism career as a fact-checker for a magazine in Ottawa in 2002.
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91原创

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