A consortium of Canadian natural gas producers are partnering with the Nisga’a Nation and Houston-based liquefied natural gas (LNG) developer Western LNG LLC on plans for another export project in British Columbia ( BC).
The consortium known as Rockies LNG Partners, along with the other developers, announced Monday that the initial project description for the Ksi Lisims LNG terminal has been filed with the provincial and federal governments. The repository initiates the engagement process for the proposed installation.
âKsi Lisims LNG will provide Canadian natural gas producers with new access to growing global energy markets and, most importantly, to global LNG prices,â said Charlotte Raggett, CEO of Rockies LNG.
The plan calls for a floating 12 million metric tonnes per year (mmty) LNG project in Nisga’a territory. The site would be at Wil Milit at the northern tip of Pearse Island on the Portland Canal, near the Alaska border. The Nass Valley site is located west of Gingolx, British Columbia. A final investment decision is scheduled for 2024, with business operations slated to start at the end of 2027 or 2028.
The facility would receive approximately 1.7 to 2.0 Bcf / d, and two pipeline projects to supply the project are currently under evaluation. Both proposals have already received regulatory approvals and would link feed gas resources in northeastern British Columbia to the project site, the partners said. The selected pipeline would be owned and operated by a third party.
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According to the initial project description, the competition is between Enbridge Inc.’s Westcoast Connector Gas Transmission project and TC Energy’s Prince Rupert Gas Transmission project. Both projects were originally designed to transport feed gas to BC LNG terminals, but were put on hold after export plans failed. Environmental approvals for the two proposed pipelines will expire in 2024, according to the filing.
The news comes as the export outlook for coastal British Columbia is a bit bleak. A series of projects, supported by shorter shipping times to Asia and âgreenâ references from British Columbia, were proposed. However, the development of LNG Canada led by Royal Dutch Shell plc is the only one to reach FID.
The BC LNG industry was hit in May when Kitimat LNG sponsor Woodside announced it would be joining partner Chevron Corp. to withdraw from the project. But there have also been green shoots in the area too. These include customers purchasing LNG cargoes tied to western Canadian gas prices and Pembina Pipeline Ltd. joining the Haisla Nation as a partner on Cedar LNG.
The promoters of the project also aim to make Ksi Lisims LNG one of the least polluting factories in the world, with net zero targets in sight. The plant would be powered by hydropower and would rely on “solid monitoring and measurement”, according to the partners. The project’s low carbon strategy also includes energy efficiency, the purchase of carbon offsets and the potential for carbon capture and storage.
âThis project will be important to the global LNG industry as it navigates the energy transition,â said Western LNG CEO Davis Thames. “Fueled by clean hydropower from British Columbia and fueled by low-carbon Canadian natural gas, Ksi Lisims LNG will achieve one of the lowest unit carbon emissions rates in the world for a project of large-scale LNG export, making net zero both achievable and achievable.
The developers also said the project, if completed, would generate “significant” benefits, including jobs, training and public revenues, for First Nations and other communities in British Columbia. The partners $ 55 billion in direct and indirect economic benefits from the development of the LNG installation, infrastructure and upstream activities. The liquefaction facility alone could cost $ 10 billion, the CBC reported.
The project proposal follows efforts by the Nisga’a Nation to locate a major LNG export facility on its treaty lands since 2014.
âAttracting an economic base to the Nass Valley has long been a priority for the Nisga’a Nation. This is why, for nearly a decade, our nation has strived to attract a world-class LNG project to our treaty lands, and why we are proud to begin the formal regulatory process for our project, Ksi Lisims LNG, âNisga’a Nation President Eva Clayton said.
Partners said they have already started initial engagement activities with a number of First Nations, government and regulatory officials, and community leaders. The engagement was to present the project and solicit comments on the first drafts of the initial project description, “many of which have been incorporated in the recent filing,” the partners said.
âNow that the restrictions related to Covid-19 are being wisely reduced, Ksi Lisims LNG anticipates that he will have more opportunities to engage and consult with a wider range of stakeholders in a safe and respectful manner, subject to appropriate management of their needs. “