Canada’s Ksi Lisims LNG, a co-development between the Nisga’a Nation and the Canadian gas producers Rockies LNG and Western LNG, has signed a 20-year LNG sale and purchase agreement (SPA) with Shell. Under the agreement, Shell will purchase 2 Mt/year of LNG from Ksi Lisims’ proposed LNG project, located in British Columbia, on the western coast of Canada.
The CAD10bn (US$7.5bn) Ksi Lisims LNG project, which secured provincial approval to enter into its environmental assessment process in March 2023, is expected to produce 12 Mt/year of LNG once completed. The project will utilise floating LNG production units built by Samsung Heavy Industries and an all-electric process technology developed by Black & Veatch, allowing the LNG liquefaction facility to reduce its CO2 emissions.
Canada, which is the world’s fifth largest natural gas producer with an output of 204 bcm (2022), exports around 42% of its production by pipeline. The country produced only about 50 mcm of LNG in 2022, 35% of which was exported. More than 15 LNG exports projects with a total capacity of 90 Mt/year are at different stage of development in the country.