A proposed LNG export terminal on the North Coast of British Columbia has made its first major long-term supply commitment from a European utility firm.
Ksi Lisims LNG said it has made a sale and purchase agreement with German energy company Uniper, where the company will buy two million tonnes of LNG annually for up to 20 years, starting deliveries in 2032.
The deal, which was made on Jul. 29 in Germany, is being called the first major long-term LNG supply deal between Canada and Germany. The deal provides for the shipment of LNG on a free-on-board basis, giving the company flexibility to send the fuel wherever it is needed.
The Ksi Lisims LNG facility, which is proposed to be developed on Nisga’a Nation-owned land on the northern end of Pearse Island near Prince Rupert, is being developed jointly by the Nisga’a Nation, Western LNG and Rockies LNG.
Uniper CEO Michael Lewis said the agreement goes beyond simply securing a supply of LNG.
“This agreement is about far more than LNG. By signing this long-term off-take agreement, we are strengthening Uniper’s portfolio with a reliable source of LNG from Canada,” Lewis said. “As a trusted partner, Canada helps diversify Europe’s energy supply and strengthens resilience against future disruptions. In an increasingly uncertain world, diversification is a strategic necessity.”
Lewis added the use of hydroelectricity and the cooperation of the project with the Nisga’a Nation make the deal a long-term energy partnership that Uniper is looking to build
Project leaders claim that Ksi Lisims LNG will be one of the most environmentally friendly LNG export facilities in the world thanks to its use of hydroelectric power from British Columbia’s electricity grid during the liquefaction process. They believe that this will make the plant 90 percent less intensive in terms of carbon dioxide emissions compared to conventional LNG plants.
Davis Thames, President and CEO of Western LNG, commented on the agreement saying that it is an important milestone for the company.
“The LNG sales agreement that we have entered into today with Uniper is our first with a European utility, and the beginning of an important long-term relationship between our companies,” Thames said. “We look forward to commercializing the rest of the project so that we can move into construction shortly.”
Nisga’a Lisims Government President Eva Clayton said the agreement reflects a long-standing Nisga’a principle of sharing resources for the benefit of others.
“Since time immemorial, the Nisga’a people have adhered to the concept of a Common Bowl,” Clayton said. “Today, that same spirit of sharing has led us to pursue LNG exports on the global stage. We are proud that this agreement with Uniper reflects the Common Bowl philosophy.”
The proposed facility would produce up to 12 million tonnes of LNG annually from two floating production and storage units. Ksi Lisims LNG says the project is designed with a pathway toward net-zero emissions.
