January 15, 2024 [The Northern View]- Global energy powerhouse Shell Eastern Trading has signed agreement to purchase LNG from northwest B.C. Ksi Lisims liquid natural gas (LNG) project. It is the first offtake agreement for the Nisga’a-led energy partnership.
The 20-year agreement between the Ksi Lisims partnership and Shell will see the Dutch company purchase two million tonnes of LNG each year, or 16.6 per cent of the project’s annual production forecast of 12 million tonnes natual gas.
The Ksi Lisims project is still awaiting an environmental review from the BC Environmental Assessment Office, and has also been vehemently opposed by the Lax Kw’alaams First Nation.
“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,” said Eva Clayton, president of Nisga’a Lisims Government.
“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.”
The project’s planned production site is at the tip of Pearse Island, just south of the Alaskan border and approximately 80 kilometres north of Prince Rupert.
Along with the Nisga’a Nation, the partners for the project are Houston, Texas-based Western LNG and Calgary-based Rockies LNG. The partnership claims the project would be the lowest-emitting LNG project in the world if it goes through.
“The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry,” said Davis Thames, president and CEO of Western LNG.
“We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision.”
According to Shell Energy Executive Vice President Steve Hill, the offtake agreement is part of an increasing global demand for LNG.
“LNG is a critical pillar of global energy security and global demand is set to increase in the years to come. We are pleased to sign this agreement with Ksi Lisims LNG which will help Shell to continue providing diverse and flexible LNG supply to its customers,” said Hill.
The partnership filed an application for an environmental certificate with the B.C. government in October of last year.
“We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most,” said Charlotte Raggett, president and CEO of Rockies LNG.
“Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas.”
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data