TotalEnergies said on Monday it will buy 2 mtpa of LNG for 20 years from the future liquefaction plant, subject to the final investment decision of the project.
Also, the acquisition of Western LNG stake grants TotalEnergies the option to increase its stake in Western LNG and/or take a direct stake in the plant up to approximately 10 percent when the final investment decision is made.
“This purchase of LNG from the future Ksi Lisims LNG plant will allow us to diversify our LNG portfolio in North America and benefit from competitive LNG supply in Western Canada to better serve our Asian customers, with whom we are developing a significant portfolio of long-term supply contracts”, said Stéphane Michel, president of gas, renewables & power at TotalEnergies.
FID
KSI Lisims LNG said in a separate statement that the deal with TotalEnergies “strengthens the commercial and financial foundations of the Ksi Lisims LNG project, paving the way for construction later this year.”
The JV confirmed that it expects to take a final investment decision later this year.
Earlier this year, Western LNG, the Nisga’a Nation, and Rockies LNG said they plan to take FID on their Ksi Lisims LNG project in 2025 following an investment by a unit of US-based private equity firm Blackstone in Western LNG.
Western LNG completed a private placement of equity securities, securing over $150 million in commitments.
Floating LNG project
Ksi Lisims LNG plans to produce 12 million tonnes per annum of LNG from two floating production facilities, which will have integrated storage with an aggregate capacity of about 450,000 cbm of LNG.
The proposed facility will have an all-electric process technology developed by US-based engineer Black & Veatch and will be located at Wil Milit on the northern point of Pearse Island, British Columbia.
In July 2023, Black & Veatch and South Korean shipbuilder Samsung Heavy Industries won a contract for the Ksi Lisims LNG nearshore floating production facility.
Last year, the partners agreed to buy the planned Prince Rupert pipeline project from TC Energy.
In addition, the partners signed the first long-term offtake deal with a unit of LNG giant Shell in January last year.
Under the 20-year SPA, Ksi Lisims will supply 2 million tonnes of LNG per year on a free-on-board basis to Shell Eastern Trading.
The deal with TotalEnergies is the second SPA for the project.
Ksi Lisims previously said that construction of the project is expected to take three to four years.
