Ksi Lisims LNG strikes first SPA
Ksi Lisims LNG, a 12mn tonnes/year floating LNG proposal led by BC’s Nisga’a First Nation, said January 8 it had entered into its first LNG sale and purchase agreement (SPA), with Shell agreeing to purchase 2mn tonnes/year for 20 years on a free-on-board basis.
The Nisga’a First Nation, on whose traditional territory Ksi Lisims LNG will be built, is partnered with Rockies LNG, a consortium of western Canadian natural gas producers, and Western LNG, a Houston-based LNG project developer.
“Our project, utilising 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,” Western LNG CEO Davis Thames said. “The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry.”
Ksi Lisims, which translates to “from the Nass River” in the Nisga’a language, will be located on the northern tip of Pearse Island, close to BC’s northern border with Alaska. Powered by renewable electricity from the provincial grid, it will be net-zero ready 2030.
“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,” Rockies LNG CEO Charlotte Raggett said. “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.”
The Rockies LNG partnership is comprised of eight Canadian natural gas producers, including Tourmaline Oil, Canada’s largest natural gas producer. Collectively, they produce about 5.6bn ft3/day of natural gas, about a third of Canada’s total natural gas production, and their average upstream emissions intensity is about 70% lower than that of US gas producers.
Ksi Lisims LNG filed an application with the BC government for an environmental assessment certificate in October 2023. The BC Environmental Assessment Office (EAO) is conducting the environmental review on behalf of the federal government under a substitution agreement reached last year.