Shell Signs 20-year Supply Deal With Canadian FLNG Project

The Ksi Lisims floating LNG facility is planned to be the world's lowest emission-intensity LNG facility and net-zero ready by 2030.

Shell logo on flag from 2016
Source: Getty Images

Shell has signed a 20-year liquefied natural gas (LNG) sales and purchase agreement with Ksi Lisims LNG. The LNG developer said in a press release that it would deliver 2 mtpa of LNG from the Ksi Lisims LNG project on a free-on-board basis. This is the first LNG offtake agreement executed by the project.

“LNG is a critical pillar of global energy security, and global demand is set to increase in the years to come,” said Steve Hill, executive vice president of Shell Energy. “We are pleased to sign this agreement with Ksi Lisims LNG which will help Shell to continue providing diverse and flexible LNG supply to its customers.”

The Ksi Lisims LNG project is backed by Nisga’a Nation, a consortium of Canadian gas producers known as Rockies LNG, and Houston-based Western LNG. The project is a proposed net-zero LNG project in British Columbia, Canada. It will be sited on Nisga’a Nation-owned land on the northern tip of Pearse Island.

“The Nisga’a Nation has been striving to grow economic opportunities for our people right here at home. Ksi Lisims LNG is the cornerstone of a brighter future for our people. As the project continues to pick up momentum, evidenced by this agreement with Shell, the Nisga’a people are now able to envision the opportunity and prosperity that Ksi Lisims LNG will bring to our Nation,” said Eva Clayton, president of Nisga’a Lisims Government.

The facility will produce 12 mtpa of LNG from two floating LNG production and storage facilities for export to overseas markets. In July 2023, Ksi Lisims awarded Black & Veatch and Samsung Heavy Industries the front-end engineering design contract for the project’s nearshore floating production facilities.

Ksi Lisims LNG, meaning “from the Nass River” in the Nisga’a language, will be powered by renewable hydroelectricity, making the facility the lowest emission-intensity LNG facility in the world and would be net-zero-ready by 2030, according to the developer.

Siemens Energy was awarded in July the contract to assist with the design of the project’s liquefaction compression and associated electrical systems. Designed to connect with British Columbia's renewable hydroelectric power supply, Ksi Lisims LNG’s emissions will be over 90% lower than those of a conventional LNG facility powered with gas turbines, according to the company.