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37 min ago 2 min read
LNG Canada and its joint venture partners have signed an equity option agreement giving MNT Investments LP the option to invest up to C$1bn ($0.7bn) to acquire a majority stake in a special purpose entity that would own a planned LNG storage tank as part of LNG Canada’s planned Phase 2 expansion.
MNT Investments LP represents the economic development organisations of five First Nations neighbouring LNG Canada’s operations in Kitimat, British Columbia.
The company said the transaction could represent one of the largest Indigenous ownership positions in major Canadian infrastructure and a significant investment in the country’s liquefied natural gas (LNG) landscape.
The special purpose entity will purchase a planned LNG storage tank, which would then be leased back to LNG Canada for the operational life of the project.
The assets will be leased back to LNG Canada for the operational life of the project, while the company will continue to operate and maintain the tank and facility.
The equity option agreement is conditional on LNG Canada’s joint venture partners approving the projected Phase 2 expansion of LNG Canada. This is expected to bring production capacity to 30 million tonnes per annum (mtpa) with two additional LNG trains.
A final investment decision for Phase 2 is targeted for 2026.
The participating First Nations include Gitga’at First Nation, Gitxaała Nation, Haisla Nation, Kitselas First Nation, and Kitsumkalum.
Chris Cooper, President and CEO of LNG Canada, said, “This agreement recognizes that Indigenous Nations should have the opportunity to participate in major investments like Phase 2… through long-term ownership and value creation at a global scale.”
LNG Canada recently completed one year of continuous operations, having shipped over 100 LNG cargoes.
LNG Canada is jointly owned by energy firms Shell (40%), Petronas (25%), PetroChina (15%), Mitsubishi (15%), and Kogas (5%), with respective stakes.
