The Nisga’a Nation’s planned Ksi Lisims LNG project has been given a key push forward by France’s TotalEnergies, which has agreed to buy LNG from the plant for 20 years.
TotalEnergies, the world’s third-largest LNG player, has signed an agreement for the purchase of two million tonnes of LNG a year from the floating liquefaction plant in northern BC, subject to the project’s final investment decision. That’s 16.66 per cent of the plant’s planned output of 12 million tonnes a year.
It’s the second such agreement, the first being inked with Shell in January 2024. That also covered the purchase of two million tonnes a year.
Ksi Lisims LNG thus has pre-sold a third of its planned output of 12 million tonnes a year.
TotalEnergies will also acquire a 5 per cent stake in Western LNG, partner, developer and future operator of the project.
The project is now in the “effects assessment” process of the BC Environmental Assessment Office (BCEAO), which is acting for BC and the federal government. The associated 800-km PRGT natural gas pipeline project also awaits a decision from the BCEAO.
Ksi Lisims is looking toward a final investment decision and a start on construction later this year, with a target of starting to ship LNG in 2029.
TotalEnergies’ agreement (with TotalEnergies Gas & Power Asia Private Limited) was hailed by Eva Clayton, president of the Nisga’a Lisims Government:
“This year marks the 25th anniversary of our landmark Treaty. For a quarter of a century, Nisga’a citizens have waited to see the kind of transformative opportunity our Treaty envisioned. That’s why it is especially meaningful to see Ksi Lisims LNG progressing steadily toward construction.
“TotalEnergies shares our vision of bringing cleaner energy to the world, advancing Indigenous leadership in the global economy, and sharing our deep commitment to environmental stewardship.”
The plant aims to be net-zero for emissions, although the timing depends on when BC Hydro can feed it enough power. “Powered by renewable hydroelectricity, Ksi Lisims LNG will be the lowest-emission-intensity LNG facility in the world, and net-zero ready by 2030.”
BC initially required new LNG plants to have net-zero emissions by 2030, but earlier this year changed that to a requirement that plants have credible plans to be “net-zero ready” by 2030.
Stéphane Michel, president of gas, renewables and power at TotalEnergies: “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.
“As part of our integrated strategy, we are also pleased to partner with Western LNG to support the development of this very low CO2-emission liquefaction plant project.”
It will be sited at Wil Milit on Nisga’a territory at the northern tip of Pearse Island.
Davis Thames, CEO of Western LNG: “TotalEnergies is the largest purchaser of North American LNG, and one of the largest producers and portfolio players in the world. Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets.”
Charlotte Raggett, president of Rockies LNG, a Ksi Lisims partner and supplier of natural gas: “As Canada works to diversify trade and increase our economic resilience, projects like Ksi Lisims LNG will be critical.
“With TotalEnergies’ extensive expertise and market reach, we are confident in our ability to deliver a reliable and sustainable supply of Canadian natural gas to international customers, while advancing Canada’s role in the evolving global energy landscape.”
