Canada’s Ksi Lisims LNG concludes first LNG offtake agreement with Shell
Canada's Ksi Lisims LNG concludes first LNG offtake agreement with Shell - Offshore Energy
Canada’s Ksi Lisims LNG concludes first LNG offtake agreement with Shell
Canada’s Ksi Lisims LNG, a co-development of the Nisga’a Nation, Rockies, LNG, and Western LNG, has signed a 20-year LNG sale and purchase agreement (SPA) with Shell.
This is the first LNG offtake agreement executed by Ksi Lisims LNG. Under the agreement, Shell will purchase 2 million tonnes of LNG per year from the proposed Canadian project on a free-on-board basis.
Davis Thames, President and CEO of Western, said: “The Ksi Lisims LNG project is an innovative development for North America. Our 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.
“The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry. We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision.”
Charlotte Raggett, President and CEO of Rockies LNG, commented: “We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most. 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 is a proposed net-zero LNG 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 is expected to be the world’s lowest emission intensity LNG facility, 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 October 16, 2023.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.