TotalEnergies signs LNG supply deal with Ksi Lisims LNG, takes stake in Western LNG

Ksi Lisims LNG LP and TotalEnergies Gas & Power Asia Private Ltd. (TTEGPA) signed a 20-year LNG agreement under which TTEGPA will purchase 2 million tonnes/year (tpy) of LNG from Ksi Lisims LNG in Western Canada on a free-on-board basis.

In connection, TotalEnergies has acquired a 5% stake in Western LNG LLC, which serves as the developer, shareholder, and future operator of the LNG project. TotalEnergies will retain the opportunity to increase ownership up to about 10% when a final investment decision (FID) is made, which is expected later this year.

Ksi Lisims said the agreements advance the project to supply global markets with net-zero, reliable, Canadian LNG, and strengthen the commercial and financial foundations of the project, paving the way for construction later this year (OGJ Online, July 10, 2023). Commercial operations are anticipated to begin in late 2028 or 2029. 

The proposed project, in British Columbia, Canada, will be sited on Nisga’a Nation owned land on the northern tip of Pearse Island. The project is expected to be powered by renewable hydroelectricity and net-zero ready by 2030, according to the company. The plant is expected to produce 12 million tpy of LNG from two floating LNG production and storage vessels.

The LNG offtake agreement, subject to project sanction, is the second executed by Ksi Lisims LNG, following one signed at end-2023 with Shell Eastern Trading Pte Ltd. (OGJ Online, Jan. 9, 2024).

In March 2024, Western LNG and the Nisga'a Nation noted a binding agreement with TC Energy to purchase the permitted PRGT pipeline project, which would carry natural gas from the Western Sedimentary Basin in northeast British Columbia to the project site on the coast.

Ksi Lisims LNG is undergoing environmental assessment work, Indigenous and community engagement, and preliminary engineering.