South Korean shipbuilder Hanwha Ocean has entered into a Memorandum of Understanding (MoU) with developer Kanata Clean to jointly develop a floating LNG (FLNG) export project near Prince Rupert, in British Columbia (Kanata press release, 16/06/2026).
The project is expected to have a total liquefaction capacity of up to 12 Mt/year and represents an estimated investment of approximately USD15.7bn. However, the development remains contingent upon the completion of final engineering work and the receipt of all necessary regulatory approvals.
Under the terms of the MoU, the two companies will collaborate in several areas, including the engineering and construction of the FLNG facility and associated infrastructure, the establishment of long-term LNG offtake agreements, and the provision of complementary solutions such as LNG carriers and LNG bunkering vessels.
Canada is continuing to strengthen its position in the global LNG sector, supported by a growing number of projects under development and a series of recent commercial agreements.
- At the end of May 2026, SEFE and Ksi Lisims LNG signed a Heads of Agreement under which SEFE would purchase 1 Mt/year of LNG for up to 20 years starting in the early 2030s, marking Canada’s first long-term LNG supply agreement with a European buyer (KEI, 01/06/2026).
- In June 2026, Fluor Corporation received a limited notice to proceed for the Phase 2 expansion of the LNG Canada terminal in Kitimat, which could increase the facility’s capacity from 14 Mt/year to 28 Mt/year, subject to a positive FID (KEI, 04/06/2026).
These recent developments also illustrate the increasing efforts of global energy companies to diversify their sources of supply in response to major market disruptions, particularly those linked to ongoing tensions in the Middle East.
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