Centrica Energy has signed a Heads of Agreement with Ksi Lisims LNG for the long-term purchase of liquefied natural gas from the proposed project on B.C.’s northwest coast.
Under the agreement, Centrica will purchase one million tonnes of LNG per year for 20 years on a free-on-board basis. The deal is subject to the completion of a definitive Sale and Purchase Agreement.
Ksi Lisims LNG said the agreement brings its total long-term supply agreements and Heads of Agreement to nine million tonnes per year, out of the project’s planned 12-million-tonne annual capacity.
Centrica Group Chief Executive Chris O’Shea said the agreement will provide additional long-term supply for the company’s global LNG portfolio.
“Energy security has never mattered more. Gas will continue to play an important role through the energy transition, and this agreement adds reliable, long-term LNG supply to our global portfolio, ensuring our customers around the world get the energy they need, when and where they need it,” O’Shea said.
“Canada is a stable, responsible energy partner, and Ksi Lisims, with its lower-carbon design and genuine partnership with the Nisga’a Nation, is exactly the kind of project we want to back.”
Ksi Lisims LNG President, Founder and CEO Davis Thames said the agreement demonstrates continued interest from major international energy companies in the project.
“Centrica, through its subsidiary British Gas, is the UK’s largest supplier of domestic natural gas and has played a central role in the UK’s energy system for generations. Serving millions of customers across the UK, it has also built a substantial global LNG portfolio to help ensure long-term security of supply,” Thames said.
“We are pleased to enter into this Heads of Agreement with Centrica and look forward to completing a definitive SPA in the coming months. The continued interest Ksi Lisims LNG is receiving from major international energy companies demonstrates the project’s strong commercial momentum as we advance toward full commercialization and a final investment decision.”
Ksi Lisims LNG is being developed through a partnership between the Nisga’a Nation, Rockies LNG and Western LNG. The proposed floating export facility would have a capacity of 12 million tonnes of LNG per year and is planned for Nisga’a Nation-owned land on the northern tip of Pearse Island.
The project is designed to use renewable hydroelectricity from B.C.’s grid to power its liquefaction operations. Developers say that could reduce its carbon intensity by up to 90 per cent compared with conventional LNG facilities.
Federal Energy and Natural Resources Minister Tim Hodgson said the agreement is another indication of international interest in the project.
“Canada is building the infrastructure we need to become an energy superpower and a supplier of choice to our allies around the world. This agreement is another strong vote of confidence in Ksi Lisims LNG — a major, Indigenous-partnered project that open new markets for Canadian energy, create good jobs, and strengthen our economy,” Hodgson said.
The project has received key environmental approvals and has been designated a Project of National Interest by the federal government.
Construction could begin as early as next year, subject to a final investment decision, with first LNG production expected in the early 2030s.
