TotalEnergies backs Canada’s low-CO2 floating LNG project

TotalEnergies Gas & Power Asia (TTEGPA), an affiliate of the French energy major TotalEnergies, has signed a long-term sales and purchase agreement (SPA) with Ksi Lisims LNG Limited Partnership to purchase liquefied natural gas (LNG) from the future plant located on Pearse Island on the northwest coast of British Columbia, Canada. In addition, the French player purchased a stake in one of the companies developing the project.

Under the deal, the French major is slated to purchase 2 million tonnes per annum (mtpa) of LNG on a free-on-board basis for 20 years from the future Ksi Lisims liquefaction plant. This is subject to a final investment decision (FID) being taken for the project.

TotalEnergies believes the future plant’s location on Canada’s Pacific coast gives it “privileged” access to Asia, said to be the largest LNG market. This is the second LNG offtake agreement secured for the project, following a deal signed with Shell at the end of 2023.

“This purchase of LNG from the future Ksi Lisims LNG plant will allow us to diversify our LNG portfolio in North America and benefit from competitive LNG supply in Western Canada to better serve our Asian customers, with whom we are developing a significant portfolio of long-term supply contracts,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies.

Kisi Lisims means “from the Nass River” in the Nisga’a language. Boasting a capacity of 12 million tons per year (mtpa) from two floating LNG production and storage facilities, the facility will be fully electrified and powered by hydroelectricity, making it what the developers say is one of the lowest CO2-emitting LNG projects in the world.

Furthermore, TotalEnergies acquired a 5% stake in Western LNG, which is the developer, shareholder, and future operator of the Ksi Lisims LNG project, together with Nisga’a Nation and Rockies LNG. As disclosed, this will give the French major a chance to boost its stake in Western LNG once certain milestones are achieved and, together with other investors, take a direct stake in the plant up to approximately 10% when the FID is made.

“TotalEnergies is the largest purchaser of North American LNG, and one of the largest producers and portfolio players in the world. Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets,” noted Davis Thames, Founder, President, and Chief Executive Officer of Western LNG. 

Developers believe the signing of these agreements strengthens the commercial and financial foundations of the Ksi Lisims LNG project, paving the way for construction later this year. This is also seen as a demonstration of strong demand for Canadian natural gas, showcasing the country’s potential as a “global energy superpower.”

According to Eva Clayton, President of the Nisga’a Lisims Government, TotalEnergies shares her nation’s vision of bringing cleaner energy to the world, advancing Indigenous leadership in the global economy, and sharing its commitment to environmental stewardship.

“As Canada works to diversify trade and increase our economic resilience, projects like Ksi Lisims LNG will be critical,” said Charlotte Raggett, President of Rockies LNG. “With TotalEnergies’ extensive expertise and market reach, we are confident in our ability to deliver a reliable and sustainable supply of Canadian natural gas to international customers, while advancing Canada’s role in the evolving global energy landscape.”

At the start of this year, new equity funding was secured to fully support the remaining development activities for the Kis Lisims LNG plant through to an FID. Once the FID is taken and regulatory approvals are secured, commercial operations are anticipated to start in late 2028 or 2029.