An LNG terminal in Poland. (Source: Shutterstock)
Ksi Lisims LNG has signed its first offtake agreement, inking Shell Eastern Trading Pte Ltd. a 20-year LNG sale and purchase agreement (SPA), according to a Jan. 8 press release.
Under the SPA, Shell will purchase 2 million tonnes of LNG per year from the proposed Canadian LNG project on a free-on-board basis.
Ksi Lisims LNG is a co-development of the Nisga’a Nation, Rockies LNG Ltd. Partnership and Western LNG LLC. The proposed net-zero liquefaction project in British Columbia will be sited on Nisga’a Nation’s land on the northern tip of Pearse Island. Powered by renewable hydroelectricity, Ksi Lisims LNG said it 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 British Columbian government for an environmental certificate in October 2023.
“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,” said Davis Thames, president and CEO of Western LNG.
The LNG facility will play an important role in the long-term economic growth of the Nisga’a Nation and others, he said.
Steve Hill, executive vice president of Shell Energy, said LNG is a critical pillar of global energy security and global demand that will increase in years to come.
“The Nisga’a Nation has been striving to grow economic opportunities for our people right here at home. Ksi Lisims LNG is the cornerstone of a brighter future for our people. As the project continues to pick up momentum, evidenced by this agreement with Shell, the Nisga’a people are now able to envision the opportunity and prosperity that Ksi Lisims LNG will bring to our Nation,” said Eva Clayton, president of Nisga’a Lisims government.
Ksi Lisims LNG was represented by Baker Botts LLP in the drafting and negotiation of the SPA.
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