A significant deal to export liquefied natural gas from northwestern British Columbia to Germany is poised for announcement this week by the federal government, sources disclosed to CBC News. The deal involves Ksi Lisims LNG in British Columbia and German company SEFE.
B.C. Energy Minister Adrian Dix refrained from confirming the involved parties when addressing reporters. He acknowledged the efforts of Ksi Lisims to expand its global market reach and emphasized the value of diversifying markets for the product.
Federal Energy Minister Tim Hodgson is scheduled to make an announcement in Vancouver on Wednesday regarding “international energy exports,” with specifics of the agreement set to be disclosed.
The Ksi Lisims LNG facility, a priority project for the B.C. government, is anticipated to export one million metric tonnes of LNG annually to Europe in the first-of-its-kind deal between Canada and Europe. The proposed $10-billion floating facility, located 80 kilometers north of Prince Rupert in Nisga’a Nation territory, aims to have a capacity to export 12 million metric tonnes of LNG each year.
The development of Ksi Lisims LNG involves a partnership between the Nisga’a Nation, Rockies LNG Ltd. Partnership, and Western LNG. The project’s assets will be managed by wholly owned subsidiaries of Western LNG, headquartered in Houston, Texas.
B.C. Premier David Eby expressed satisfaction with the agreement, highlighting the significance of securing offtake agreements to advance towards a final investment decision.
In Europe, natural gas prices have surged following recent geopolitical events, prompting discussions about Canada’s potential role as a significant supplier. Federal International Trade Minister Maninder Sidhu emphasized Canada’s commitment to being a reliable partner during the energy crisis.
The Prince Rupert Gas Transmission pipeline, spanning 900 kilometers, will supply natural gas to the facility for liquefaction and export. Despite receiving approval from the B.C. Environmental Ministry, the project faces opposition from First Nations and environmental groups.
Environmental concerns and legal challenges from First Nations have raised uncertainties about the project’s future success, as emphasized by Alex Walker from Environmental Defence. The electricity required for the LNG facility will be sourced from the planned North Coast Transmission Line, a priority project supported by both provincial and federal governments.