Energy Sector Network News Partners in Canada's proposed project said on Monday that global gas giant Shell (Shell) has agreed to purchase 2 million tonnes of liquefied natural gas (LNG) per annum from KSI Lisims LNG.
British Columbia's Pacific Coast is close to Canada's vast Montney shale fields and has relatively short shipping distances to the Asian market.
There is a high demand for natural gas in Asia to replace coal, which has higher emissions. But the International Energy Agency said in October that the expected increase in global LNG production could lead to a surplus after 2025.
If completed, KSI Lisims would be one of Canada's first LNG export facilities and the second largest, but it has yet to pass all regulatory hurdles.
Shell hopes to increase its LNG production by 20% to 30% by the end of the decade and lead the construction of a Canadian LNG project in British Columbia (BC). The project will produce 14 million tonnes of LNG per year and will begin shipping in 2025.
KSI Lisims is NISGA'A Nation, the Rockies LNG Partnership and Western LNG jointly develop a project that will produce 12 million tonnes of LNG per year through two floating LNG production and storage facilities. Exports could begin by the end of 2028.
Davis Thames, chief executive officer of Occidental Corp., said the project is expected to announce more sales agreements in the coming months, but it has not yet been decided how many contracts will be signed in the total output.
As required by the province of British Columbia**, these facilities will use hydroelectric power to achieve net-zero emissions by 2030. The plan is contingent on BC Hydro Utilities expanding transmission lines to service LNG and mining projects in northwest BC.
The Times said KSI Lisims applied for an environmental certificate from B.C.** in October and is likely to receive a decision before the end of the year.
Another partner, Rockies LNG, is a group of natural gas producers that includes tourmaline (TOUto) and Ovintiv (OVV.n)。
The first phase of the Canadian LNG company is expected to open by the middle of the decade, and the company is considering approval for the second phase.
Woodfibre LNG is a subsidiary of Pacific Energy and Enbridge (ENB.).TO) has, is another BC export facility that has entered the construction phase. Woodfibre, which has an annual production capacity of 2.1 million tonnes, has reached an agreement to supply the majority of its LNG** to bp plc (bp.).l)。
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