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TotalEnergies Secures Long-Term LNG Supply and Stake in Low-Carbon Canadian Project
TotalEnergies Secures Long-Term LNG Supply and Stake in Low-Carbon Canadian Project

TotalEnergies Secures Long-Term LNG Supply and Stake in Low-Carbon Canadian Project

  • 20-May-2025 7:45 PM
  • Journalist: Emilia Jackson

Global energy giant TotalEnergies announced that it has signed a comprehensive agreement with Ksi Lisims LNG, securing the purchase of 2 million tons per annum (Mtpa) of liquified natural gas LNG for a period of 20 years from the planned liquefaction plant in Western Canada. This substantial Sales and Purchase Agreement (SPA) is contingent upon the final investment decision (FID) for the project.

In a parallel development, TotalEnergies has also acquired a 5% stake in Western LNG, the driving force behind the Ksi Lisims LNG project as its developer, shareholder, and prospective operator. This initial acquisition is not merely a financial investment; it grants TotalEnergies the valuable option to further increase its shareholding in Western LNG, and/or directly acquire a stake in the Ksi Lisims LNG plant itself, potentially reaching approximately 10% upon the project's FID.

The Ksi Lisims LNG project, envisioned as a 12 Mtpa liquefaction facility, is located on the Pacific coast of British Columbia, Canada. This prime geographical positioning offers direct and privileged access to the burgeoning Asian LNG market, which represents the largest global consumer of the super-chilled fuel. What truly sets Ksi Lisims LNG apart, however, is its pioneering approach to environmental sustainability. The plant is designed to be fully electrified and will be powered exclusively by hydroelectricity, making it one of the lowest CO2-emitting LNG projects worldwide.

St茅phane Michel, President of Gas, Renewables & Power at TotalEnergies, articulated the strategic rationale behind the agreement. "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," Michel stated. He further emphasized the broader implications of the partnership: "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."

This agreement represents a multifaceted win for TotalEnergies. It secures a substantial, long-term supply of competitively priced LNG from a strategically important region. The Canadian location, with its direct access to Asia, allows TotalEnergies to further strengthen its position in the rapidly expanding Asian LNG market and fulfill its growing portfolio of long-term supply commitments to customers in the region.

Tags:

Natural Gas

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