Ksi Lisims LNG Limited Partnership, Rockies LNG Limited Partnership, and Western LNG LLC (Western), announced that Ksi Lisims LNG and Shell Eastern Trading Pte Ltd (Shell) have signed a 20-year LNG sale and purchase agreement (the SPA).
As explained, under the SPA, Shell will purchase 2 million tonnes of LNG per year from the Ksi Lisims LNG project on a free-on-board basis. This is the first LNG offtake agreement executed by Ksi Lisims LNG.
The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry. We look forward to continuing to work with Shell and our other customers as we move toward reaching a final investment decision.
..said Davis Thames, president and CEO of Western.
Steve Hill, Executive Vice President of Shell Energy, said: “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.”
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. The Ksi Lisims LNG project will provide energy markets in Asia with low-carbon, reliable energy that helps transition from higher emitting fuels to meet growing energy needs and supports continued growth in intermittent renewables such as wind and solar.
…said Charlotte Raggett, president and CEO of Rockies LNG.
Ksi Lisims LNG, meaning “from the Nass River” in the Nisga’a language, is a proposed net-zero liquefied natural gas project in British Columbia, Canada. It will be sited on Nisga’a Nation-owned land on the northern tip of Pearse Island. Powered by renewable hydroelectricity, Ksi Lisims LNG will be the lowest emission intensity LNG facility in the world, and net-zero ready by 2030.
As explained, 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 B.C. government for an environmental certificate on October 16, 2023. Ksi Lisims LNG was represented by Baker Botts L.L.P. in the drafting and negotiation of the SPA.