Ksi Lisims LNG has entered into a Heads of Agreement with Australian energy company Santos for the sale and purchase of one million tonnes of liquefied natural gas per year for 20 years.
The agreement would see LNG sold to Santos on a Free On Board basis, with Santos taking responsibility for the shipment once the LNG is loaded.
The deal is subject to the completion of a formal Sales and Purchase Agreement.
Ksi Lisims LNG said the agreement added to the project’s commercial momentum as it moved toward a final investment decision.
“Santos has built one of the most significant LNG businesses in the Asia-Pacific, and their decision to secure long-term supply from Ksi Lisims LNG reflects a shared commitment to responsible energy development and a clear view that supply diversity is essential to long-term energy security,” said Davis Thames, founder, president and CEO of Western LNG.
Thames said the interest from global energy companies reflected growing demand for Canadian LNG.
“The level of interest we are seeing from leading global energy companies like Santos reflects a growing global role for reliable, low-carbon Canadian LNG. This HOA is a strong signal of confidence in our project as we move into the final stages of commercialization and toward a final investment decision,” he said.
The proposed Ksi Lisims LNG facility is planned for the north coast of B.C. and is designed to use clean hydroelectric power to reduce its lifecycle emissions compared with traditional LNG facilities.
The project had already entered into sales and purchase agreements with Shell, TotalEnergies and Uniper for a combined six million tonnes of LNG per year.
Ksi Lisims LNG said it expects to complete commercialization of its planned 12 million tonnes per year capacity this year.
