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.
Recommended Reading
VAALCO Energy Updates Canadian Drilling Campaign Results
2024-05-30 - VAALCO Energy drilled four 2.75-miles wells, apparently in the Western Canadian Sedimentary Basin.
VAALCO Reports Increased Reserves After Svenska Deal
2024-07-16 - VAALCO acquired Swedish E&P Svenska’s 27.39% non-operated working interest in the deepwater Baobab Field in Block CI-40, offshore Côte d’Ivoire.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
E&P Highlights: May 28, 2024
2024-05-28 - Here’s a roundup of the latest E&P headlines, including production start up at a field using an innovative emissions reduction technology.
Utica Oil: Encino Energy’s Liquids Wells Top the Charts in Ohio
2024-06-11 - Encino Energy’s first-quarter wells took the top five spots in Ohio as the company’s liquids output accounted for more than half of the state’s 7.23 MMbbl first-quarter total.