Ksi Lisims LNG, Shell finalize supply agreement

Jan. 9, 2024
Ksi Lisims LNG signed a 20-year agreement to supply Shell Eastern Trading Pte Ltd. with 2 million tpy of LNG from the Canadian project on a free-on-board basis.

The Nisga'a Nation, Rockies LNG Partners LP, and Western LNG signed a 20-year agreement to supply Shell Eastern Trading Pte Ltd. with 2 million tonnes/year (tpy) of LNG from the Ksi Lisims LNG project in British Columbia, Canada, on a free-on-board basis. This is the first LNG offtake agreement executed by Ksi Lisims LNG. 

Ksi Lisims will be hosted by the Nisga’a Nation on their wholly owned treaty land at Wil Milit on the northern tip of Pearse Island near the Nisga'a village of Gingolx, BC. The initial project description for the proposed floating 12-million tpy plant was filed in July 2021 (OGJ Online, July 20, 2021). An application for an environmental certificate was filed with the BC government on Oct. 16, 2023.

Commercial operations are expected to begin in 2028.

Project partners expect Ksi Lisims to provide global markets with low-carbon LNG to help meet growing energy needs and reduce the need for base-load coal plant construction. The plant will use hydropower generated in British Columbia and potentially carbon capture and storage, as well as other mechanisms such as carbon offsets and efficiency monitoring. The project’s greenhouse gas emissions are expected to be 90% lower than conventional LNG plants.