Ksi Lisims FLNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Ksi Lisims FLNG Terminal (formerly known as Rockies LNG Partnership Terminal) is a proposed LNG terminal in Canada.[1]

Location

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Project Details

  • Owner: Ksi Lisims LNG GP Ltd.[2]
  • Parent: Nisga'a Nation, Rockies LNG, Western LNG[3]
  • Location: Gingolx, British Columbia, Canada[3]
  • Coordinates: 54.99196300, -130.03067876 (approximate)
  • Type: Export
  • Capacity: 12 mtpa[1]
  • Cost: US$10 billion[4]
  • Start Year: 2030[5]
    • Formerly 2027[4]
  • Associated Infrastructure: West Coast Connector Gas Transmission; Prince Rupert Gas Transmission[4]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In February 2019, a group of 10 Canadian natural gas producers with a collective output of approximately 3 billion cubic feet per day (bcf/d) formed the Rockies LNG Partnership. The consortium’s stated aim was to receive regulatory approval for a 12 million tonnes per year (mtpa) facility, called the Rockies LNG Partnership Terminal, attract a larger partner to provide capital, and ultimately supply the project with its own natural gas. Consortium members included Deep Basin natural gas producer Peyto Exploration & Development, Advantage Oil and Gas, Birchcliff Energy, Seven Generations Energy, among others. Canbriam Energy withdrew from the consortium following its acquisition by Pacific, reducing the number of members to nine.[1]

In October 2019, Rockies LNG indicated an imminent start to the regulatory process with a commissioning date tentatively scheduled for 2026. Additionally, the consortium planned to supply the project via a long-haul pipeline with some existing regulatory approvals. Project partners expressed interest in Enbridge’s Westcoast Connector Gas Transmission Project and TC Energy’s Prince Rupert Gas Transmission route, which was originally intended to service Shell’s Prince Rupert LNG project (21 mtpa) and the Petronas-operated Pacific Northwest LNG project (18 mtpa), respectively. Both of these projects were cancelled in 2017, although their corresponding midstream projects already have environmental certificates and have completed a certain amount of permitting.[1] Project partners have indicated plans to develop the terminal offshore, as a floating LNG (FLNG) facility. This would require three barges, but would eliminate the large capital requirements for land-flattening. No cost estimates have been disclosed yet.[1]

In July 2021, Rockies LNG and Western LNG partnered with Canada's Nisga'a Nation to develop the project under a new name: Ksi Lisims LNG Terminal. The Nisga'a Nation had formerly sought to develop a separate LNG project, Nisga'a LNG Terminal. The terminal is still intended to supply 12 mtpa from an offshore facility. It would be located on a site owned by the Nisga'a Nation near the community of Gingolx in British Columbia.[3] The projects' sponsors state that it will be a net-zero facility within three years of startup through the use of hydropower in combination with monitoring and measurement, energy efficiency, purchase of carbon offsets and potential carbon capture and storage.[6][4]

In December 2022, Canada Energy Regulator granted the project a 40-year export license that would start on the day of the first export. The regulator accepted a requested early expiration clause where the term of the license ends 10 years after the date of issuance of the license if the export of LNG has not commenced on or before that date. A start date for the terminal of late 2027 or 2028 was still being targeted.[7]

In August 2023, Tourmaline Oil Corp. announced that it would join the Rockies LNG partnership, one of the project's parent companies alongside the Nisga’a Nation and Western LNG.

In January 2024, Ksi Lisims LNG signed its first offtake contract with Shell for a 2-mtpa, 20-year sales and purchase agreement (SPA).[4]

Opposition

In May 2023, over a dozen environmental groups requested that the government of British Columbia delay planning around the project to further consider its impacts under federal and provincial emissions caps. In a letter signed by Friends of Wild Salmon, among others, the author wrote that “A public comment period should not be conducted when it is unclear how forthcoming legislation and regulations will impact what needs to be considered.” If the project is to be electrified, as planned for net-zero operation, power lines would need to be built over 95 kilometers, much of which through the territory of First Nations that have already expressed concern about the project. Without electrification, emissions could be 1.9 million tonnes of carbon dioxide per year, according to the Vancouver Sun, which would be nearly 3% of British Columbia's annual emissions.[8]

In November 2023, the Lax Kw’alaams Band said during public consultations that it continued to oppose the project. “We wish to reiterate our position that all projects within our traditional territory require our explicit consent before advancing, and as of this date, we have not granted consent to the Nisga’a Nation, Rockies LNG Partners nor Western LNG for the project to proceed," said Lax Kw’alaams Mayor Gary Reece.[9]

Articles and resources

References

  1. Ksi Lisims LNG Applies For CER Export Licence. Daily Oil Bulletin. Accessed May 2022.
  2. 3.0 3.1 3.2 Ksi Lisims LNG. Ksi Lisims LNG. Accessed May 2022.
  3. 4.0 4.1 4.2 4.3 4.4 Jul 19, Kyle Bakx · CBC News · Posted:; July 19, 2021 4:00 AM ET | Last Updated:; 2021. "Nisga'a Nation and partners propose new $10B LNG megaproject in B.C. | CBC News". CBC. Retrieved 2022-05-18.{{cite web}}: CS1 maint: extra punctuation (link) CS1 maint: numeric names: authors list (link)
  4. GIIGNL. The LNG Industry: Annual GIIGNL Report. June 2024.
  5. "Ksi Lisims LNG | Rockies LNG Partners". www.rockieslng.com. Retrieved 2022-05-18.
  6. Ajsa Habibic, Canadian LNG project gets 40-year export license, Offshore Energy, Dec. 16, 2022
  7. Vancouver Sun. Environmental groups seek to delay $10 billion LNG project in B.C. May 29, 2023.
  8. "Lax Kw'alaams staunchly opposed to proposed north coast LNG project". Vancouver Island Free Daily. 2023-11-17. Retrieved 2024-09-09.

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External resources

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