According to a statement issued on Thursday, Carney included Ksi Lisims LNG on his list of the “major projects” his government would help fast-track.
This is the second tranche of projects, following the first list which included the planned second phase of Shell’s LNG Canada export project
The statement said that the Ksi Lisims LNG project on Pearse Island, British Columbia, will “transform Canada’s energy future.”
Led by the Nisga’a Nation, Ksi Lisims LNG will become Canada’s second-largest LNG facility and “one of the world’s lowest-emission LNG operations once fully electrified, with emissions 94 percent below the global average.”
According to the statement, the project is expected to attract nearly $30 billion in investment, create thousands of skilled careers, and strengthen Canada’s position as a global LNG exporter.
The project referral also includes the 800-kilometre Prince Rupert gas transmission project to supply feed gas for liquefaction, and a 95-kilometre electrical transmission line to supply electricity to the facility.
“By ensuring that projects like LNG Canada 2 (referred to the MPO in September) and Ksi Lisims LNG get built, we can more than double Canada’s LNG production,” the statement said.
Approval
In September, Canada’s federal government and the province of British Columbia approved the Ksi Lisims 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.
Earlier this year, French energy giant signed a 20-year deal with Ksi Lisims LNG to buy 2 mtpa of LNG for 20 years from the future liquefaction plant, subject to the final investment decision of the project.
In addition, TotalEnergies will also take a 5 percent stake in Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project.
US-based private equity firm Blackstone also invested in Western LNG.
With regulatory approvals and final investment decisions by the project partners, construction could begin in 2025 with the site operational in 2029, Ksi Lisims LNG previously said.
