TotalEnergies has signed a Sales and Purchase Agreement (SPA) with Ksi Lisims LNG to buy 2 million tons of liquefied natural gas (LNG) per year over a 20-year period. The supply will come from a planned liquefaction facility, with deliveries starting once the project reaches its final investment decision.
At the same time, TotalEnergies has acquired a 5% stake in Western LNG, the company developing and set to operate the Ksi Lisims LNG project. This investment also gives TotalEnergies the option to increase its ownership in Western LNG or take a direct stake in the plant itself, up to around 10%, once the project moves forward.
“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. “As part of our integrated strategy, we are also pleased to partner with Western LNG to support the development of this very low CO2 emission liquefaction plant project”.
The Ksi Lisims LNG project will be located on Canada’s Pacific coast in British Columbia and is designed to produce 12 million tons of LNG annually. Its location offers direct access to Asian markets, the largest consumers of LNG. Fully powered by hydroelectricity, the facility will be one of the lowest carbon-emitting LNG projects globally.
