Planned LNG project announces 20-year offtake agreement

The planned Ksi Lisims LNG floating production unit development in western Canada said it has signed its first offtake agreement.

Ksi Lisims LNG, a co-development of the Nisga’a Nation, Rockies LNG, and Western LNG LLC (Western), has signed a 20-year LNG sale and purchase agreement with Shell. Shell agreed to purchase 2 million tonnes of LNG per year on a free-on-board basis.

The Ksi Lisims LNG project, utilizing floating LNG production units built by Samsung Heavy Industries and an all-electric process technology developed by Black & Veatch, will be the lowest emitting LNG liquefaction facility in the world, said Davis Thames, president and CEO of Western.

“The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry,” Thames said. “We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision.”

Steve Hill, executive vice president of Shell Energy, said LNG is a critical pillar of global energy security and global demand is set to increase in the years to come.

“We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most,” said Charlotte Raggett, president and CEO of Rockies LNG. “Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas. The Ksi Lisims LNG project will provide energy markets in Asia with low-carbon, reliable energy that helps transition from higher emitting fuels to meet growing energy needs and supports continued growth in intermittent renewables such as wind and solar.”

Ksi Lisims LNG, meaning “from the Nass River” in the Nisga’a language, is a proposed net-zero liquefied natural gas project in British Columbia, Canada. It will be sited on Nisga’a Nation-owned land on the northern tip of Pearse Island. Powered by renewable hydroelectricity, Ksi Lisims LNG will be the lowest emission intensity LNG facility in the world, and net-zero ready by 2030. The facility will produce 12 million tonnes per annum of LNG from two floating LNG production and storage facilities. Ksi Lisims LNG filed an application with the B.C. government for an environmental certificate on Oct. 16, 2023.