A proposed floating liquefied natural gas export project near Prince Rupert has found an international partner willing to consider participating in the venture.
The South Korean company Hanwha Ocean and the Vancouver company Kanata Clean Power & Climate Technologies Corp. signed a non-binding memorandum of understanding to explore cooperation in developing the proposed Kanata LNG project, a floating LNG export facility in the Prince Rupert area.
will be designed to produce up to 12 million tonnes of LNG per year. Kanata estimates that the development could require roughly $15.7 billion USD in capital investment, subject to engineering work, commercial agreements and regulatory approvals.
Under the agreement, the companies will explore the possibility of cooperating in engineering and construction services, operation and maintenance, equity participation, LNG purchase, and marine transportation solutions.
“Canada has world-class natural gas resources and strong long-term potential to support reliable LNG supply to Asia-Pacific markets,” said Philippe Levy, President of Hanwha Ocean’s Energy Plant Unit.
“We are pleased to establish this strategic relationship with Kanata and to explore how Hanwha Ocean’s FLNG, offshore engineering, construction, and marine energy capabilities could contribute to the proposed Kanata LNG project.”
Levy noted that while the agreement marks an important milestone, substantial work remains before any final investment or construction decisions are made.
“This MOU is an important first step. Significant work remains before any final investment or project execution decision can be made, and we look forward to working with Kanata to evaluate the opportunity in a disciplined and responsible manner,” he said.
Kanata LNG is a proposed floating LNG facility located near Prince Rupert, and described by the company as the closest Pacific port of North America to Northeast Asia. The Kanata LNG facility would utilize modular construction methods and floating liquefaction technology to create export capacity.
Kanata has also stated that any First Nation participating in the project will have the option of acquiring up to a 50 per cent equity stake in the project.
“We are delighted to welcome Hanwha Ocean as a strategic partner in Kanata LNG through this Memorandum of Understanding,” said Robert Delamar, Chief Executive Officer of Kanata Clean Power & Climate Technologies Corp.
“Hanwha brings globally recognized capabilities in floating infrastructure, shipbuilding and energy systems, making it an outstanding collaborator as we advance the project.”
The companies emphasized that the memorandum is non-binding and does not commit either party to a final transaction, investment, LNG supply agreement or construction contract.
The proposed project remains subject to environmental assessments, Indigenous engagement, regulatory approvals and future commercial agreements before development could proceed.
