TotalEnergies Signs 20-Year Canada LNG Deal, Takes Stake in Ksi Lisims Project

TotalEnergies has signed a 20-year agreement to purchase 2 million tons of LNG annually from Canada’s Ksi Lisims project and acquired a 5% stake in developer Western LNG, with options to expand its ownership when a final investment decision is made.

(Reuters) — French energy group TotalEnergies said in a statement on May 19 it had signed an agreement with Ksi Lisims LNG for the purchase of 2 million tons per year of LNG for 20 years from a future liquefaction plant, subject to the final investment decision of the project.

Mammoet crews transport a massive industrial pressure vessel at the LNG Canada site in Kitimat, British Columbia, using self-propelled modular transporters (SPMTs) as part of ongoing construction for one of Canada’s largest LNG export terminals. (Image courtesy of LNG Canada)

TotalEnergies said that was also acquiring a 5% stake in Western LNG, the developer, shareholder, and future operator of the Ksi Lisims LNG project. Ksi Lisims is a liquefied natural gas (LNG) plant with a capacity of 12 million tons per year, located on the Pacific coast of Canada.

TotalEnergies said the acquisition grants it the option to increase its stake in Western LNG and/or to take a direct stake in the plant up to approximately 10% when the final investment decision is made.

It said that the project's west coast location will give it privileged access to Asia, the largest LNG market.

No financial details were provided.

Fully electrified and powered by hydroelectricity, Ksi Lisims LNG will be one of the lowest CO2-emitting LNG projects in the world, the company said.