France-based TotalEnergies and Ksi Lisims LNG have agreed a SPA (Sales and Purchase Agreement) for 2 MTPA (million tons per annum) of LNG (liquefied natural gas).
The new fully-electric liquification plant is to be constructed on Canada’s Pacific coast and be powered entirely by hydroelectricity, making it one of the world’s least carbon-intensive LNG projects. The location will give TotalEnergies easy access to the Asian market, where the demand for LNG is high.
LNG has become an increasingly important fuel, and while the UK is unlikely to see LNG from the new project, it will help relive the demand on other suppliers like Qatar.
TotalEnergies, which also makes the Total coolant and lubricant range, is also buying a 5% stake in Western LNG, which is going to develop and operate the project, as well as be a shareholder in it. Once a final investment decision is made, TotalEnergies will have the option to increase this stake, take a direct stake in the plant or formulate some combination thereof.
TotalEnergies president responsible for renewables, gas and power, Stéphane Michel, said:
“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.”
He added that the company was happy to be involved in the project, in partnership with Western LNG, to build a liquification plant with very low carbon emissions.
