TotalEnergies has signed a deal to buy two million tons per year of liquefied natural gas for 20 years from the proposed Ksi Lisims LNG project on the north coast of B.C.Â
The proposed project is a liquefied natural gas plant with a capacity of 12 million tons per year.
In connection with the deal, TotalEnergies will acquire a five per cent stake in Western LNG, the developer, shareholder and future operator of the project.
The French company has also been granted an option to increase its stake in Western LNG and/or take a direct stake in the plant of up to about 10 per cent once a final investment decision is made.
In a statement, Davis Thames, the founder, president and CEO of Western LNG, said they’re pleased to welcome TotalEnergies as an investor, describing the company as the largest buyer of North American LNG.
“Their experience with development and operations will be a welcome addition to the project as we move steadily toward FIDÂ [final investment decision]Â later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets,” Thames said.
Ksi Lisims is being developed by the Nisga’a Nation, Rockies LNG Partners and Western LNG. The project submitted its application to the B.C. government for an environmental assessment certificate in October 2023.
“For a quarter of a century, Nisga’a citizens have waited to see the kind of transformative opportunity our Treaty envisioned,” said Eva Clayton, president of the Nisga’a Lisims government. “That’s why it is especially meaningful to see Ksi Lisims LNG progressing steadily toward construction.”
Charlotte Raggett, president of Rockies LNG, said projects like Ksi Lisims LNG will be critical “as Canada works to diversify trade and increase our economic resilience.”
The TotalEnergies deal is the second offtake agreement signed by Ksi Lisims, which is still waiting for its final approval from the B.C. government. Its proponents say if it is approved in 2025, it could be online by 2029.
Shell Eastern Trading Pte Ltd. signed a similar deal last year to also buy two million tons of LNG per year for 20 years.
