Ksi Lisims LNG secures major supply deal with TotalEnergies

Key Takeaways:

• TotalEnergies has signed a 20-year Sales and Purchase Agreement to buy 2 million tons of LNG annually from the future Ksi Lisims LNG facility, strengthening its North American LNG portfolio and supporting long-term supply commitments to Asian markets.
• TotalEnergies has acquired a 5% stake in Western LNG, the project’s developer and future operator, with the option to increase its ownership to approximately 10% upon final investment decision, reinforcing its integrated strategy in the LNG value chain.
• Ksi Lisims LNG, a floating LNG export plant co-developed by the Nisga’a Nation, aims to achieve net zero emissions within three years of operation through renewable energy use and carbon offsets, while delivering economic and social benefits to Indigenous and local communities.

The Whole Story:

TotalEnergies has signed a Sales and Purchase Agreement (SPA) with Ksi Lisims LNG for the purchase of 2 million tons of LNG for 20 years from the future liquefaction plant, subject to the final investment decision of the project.

In parallel, TotalEnergies acquires a 5% stake in Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project. This acquisition grants TotalEnergies the option to increase its stake in Western LNG and/or take a direct stake in the plant up to approximately 10% when the final investment decision is made.

“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”, said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies. “As part of our integrated strategy, we are also pleased to partner with Western LNG to support the development of this very low CO₂ emission liquefaction plant project.”

Ksi Lisims LNG is a proposed floating liquefied natural gas (LNG) export facility located on Nisga’a Nation treaty lands at Wil Milit, on the northern tip of Pearse Island near Gingolx, British Columbia. Jointly developed by the Nisga’a Nation, Rockies LNG, and Western LNG, the project is designed to produce up to 12 million tonnes of LNG per year, receiving 1.7 to 2.0 billion cubic feet of natural gas daily via a pipeline from northeastern British Columbia, with commercial operations targeted for late 2028 or 2029.

The facility aims to set a new environmental standard by achieving net zero greenhouse gas emissions within its first three years of operation, primarily through the use of renewable BC Hydro power, energy efficiency measures, and carbon offsets. Ksi Lisims LNG is expected to provide significant economic and social benefits, including jobs, training, and business opportunities for Indigenous and local communities, while contributing to global emissions reductions by supplying lower-carbon LNG to Asian markets as an alternative to coal and oil.