Latest news with #KsiLisims
Canada Standard
12-06-2025
- Business
- Canada Standard
Risks, Uncertainty Cloud Future of Ksi Lisims LNG Facility: IEEFA
The Indigenous-owned Ksi Lisims liquefied natural gas (LNG) project in British Columbia faces major local risks and global market uncertainty that could derail its success, a new report warns. With these challenges factored into financial projections, it is "highly unlikely" that the floating gas liquefaction and export terminal can be delivered on budget, the Institute for Energy Economics and Financial Analysis (IEEFA) writes in the report. Planned for B.C's northern coast, Ksi Lisims would export 12 million tonnes of liquified natural gas per year, supplied by the approved-but not yet built-Prince Rupert Gas Transmission line. It is located on Nisga'a land and backed by a partnership between the Nisga'a Nation, Texas-based Western LNG, and Alberta's Rockies LNG. The project is undergoing environmental assessments and seeking regulatory approvals ahead of a final investment decision expected later this year. But Ksi Lisims has faced opposition from the start. Last November, Gitanyow Hereditary Chiefs declared plans for an Indigenous Protected and Conserved Area (IPCA) to block the pipeline's route over environmental concerns. The pipeline also crosses rugged terrain and sensitive marine areas, adding engineering and regulatory hurdles, says IEEFA. View our latest digests Challenges like these significantly affect Ksi Lisims' financial prospects, suggests IEEFA's analysis. The project's dependence on the Prince Rupert pipeline for feed gas is a key risk, the report states. B.C. has just recently confirmed that the pipeline permit is viable after it expired last November, but some First Nations have legally challenged it, alleging inadequate consultation and environmental review. Protests led by the Gitananyow Hereditary Chiefs could add more costs, as with past megaprojects like the Coastal GasLink pipeline, writes IEEFA. Ksi Lisims' developers say they will reduce emissions by powering the facility with renewable hydropower from the B.C. grid, and are targeting net-zero operations. But IEEFA cites uncertainty about securing BC Hydro's electricity supply as another layer of risk, imperilling the facility's net-zero ambitions and thus its regulatory compliance. "Without hydroelectricity, Ksi Lisims LNG will have to rely on gas-powered turbines which increase project capital costs by approximately C$2 billion," adds IEEFA. The project partners have yet to finalize an agreement with BC Hydro to connect the facility to the North Coast Transmission Line. Meanwhile, other upcoming LNG projects in the province are competing for the same grid capacity. Net revenue is also questionable given the lack of LNG takers, IEEFA writes, estimating that about 70% of planned production has no dedicated buyer. The twin floating LNG barges planned for the terminal face higher operating costs in harsh marine environments, are largely "unproven in Canadian waters," and will provide few local jobs. And by the time Ksi Lisims would start supplying LNG-its targeted completion date is in 2029-many similar projects are due to come online across the world, creating a global glut, IEEFA writes. This oversupply could align with weakening demand-as expanding clean energy capacity and tighter emissions regulations lead to structural declines in LNG use. Evolving domestic markets could also undermine success, as competition for gas as a feedstock within Canada limits the volumes available for export. "While project developers praise its potential economic benefits, the viability of the Ksi Lisims project depends on its ability to overcome cost pressures, secure firm purchase commitments, and navigate a highly competitive global LNG market amid uncertainties about demand trends," writes IEEFA. "At this point, both the project and Canada's broader LNG ambitions remain vulnerable to formidable headwinds." Source: The Energy Mix
Yahoo
10-06-2025
- Business
- Yahoo
B.C. premier defends new LNG pipeline with terminus near Prince Rupert
B.C. Premier David Eby is defending the provincial government's approval to continue construction on a new pipeline project that will supply natural gas to a proposed floating liquefied natural gas (LNG) terminal north of Prince Rupert, saying his government would not turn away investment in the province. The Prince Rupert Gas Transmission project is a joint venture between the Nisga'a Nation and Texas-based Western LNG to supply natural gas to the proposed Ksi Lisims LNG facility, a project the province says is still undergoing environmental assessment. "The Ksi Lisims project is an Indigenous-owned project led by the Nisga'a Nation. They are a treaty nation that has control over their jurisdiction," Eby said, speaking from Seoul, South Korea, as he nears the end of his 10-day trade mission to Asia. "They have a vision for economic growth in the area, for their people, which includes selling B.C. resources into the Asian market, where I am right now." The Nisga'a Nation and Western LNG say the Ksi Lisims project would be a floating production facility capable of producing 12 million tonnes of LNG per year. The project faces opposition from several environmental groups and the Gitanyow hereditary chiefs, who argue it will have negative environmental consequences, including a risk to important salmon habitat. Tara Marsden, sustainability director for the Gitanyow hereditary chiefs, previously told CBC News there are concerns about Western LNG's financial backing from Blackstone Inc. Blackstone is a major American asset manager whose CEO publicly endorsed U.S. President Donald Trump and contributed to his election campaign — with Marsden saying the investment undermines any notion that the project is needed to push back against Trump's tariff threats. CBC News asked Eby whether the bulk of the profits from the Prince Rupert Gas Transmission project would enrich a U.S. company. "We're not in the business of turning away investment in British Columbia," the premier responded. "Especially investment that assists us in diversifying our customers for our resources and allows us to get a higher price for those resources." The pipeline was first approved in 2014 under the ownership of Calgary-based TC Energy Corp, when it was meant to supply the now-cancelled Pacific NorthWest LNG terminal spearheaded by Malaysian energy giant Petronas. It was purchased by the Nisga'a Nation and Western LNG in 2024 under their revised proposal for the Ksi Lisims facility. Eby says he wants to work with Alberta Eby was also asked Monday about comments from Alberta Premier Danielle Smith, who said she could convince him to drop his opposition to a second crude oil pipeline from Alberta to B.C.'s North Coast. "I'm not the one who stands between Premier Smith and a pipeline to the coast. There's no proponent, there's no money, there's no project right now," Eby said. "In the event that Premier Smith is successful in assembling those things, we'll cross that bridge when we come to it." Prime Minister Mark Carney said last week he supports "nation-building projects," including a possible decarbonized oil pipeline — if he can find consensus among the said companies in South Korea that he's talking to are focused on bringing in hydrogen. He said that would involve Alberta using blue hydrogen, and B.C. exporting green hydrogen, which he said would aid in carbon transition. "I'm happy to talk to Premier Smith about our shared goals of increasing prosperity, about uniting the country," he told reporters. "Focusing on a project that currently does not exist, and focusing on our differences rather than where we can work together, is not the spirit." Eby travelled from Malaysia to Seoul where he met with officials from conglomerates like Hyundai and Samsung as well as the Canadian ambassador to South Korea. His trade mission to Asia, a bid to diversify the province's trading relationships amid the tariff war with the U.S., will wrap up Tuesday.
Vancouver Sun
27-05-2025
- Business
- Vancouver Sun
Is LNG in B.C. falling behind? Here's the status of five major projects
The Ksi Lisims LNG project, which is backed by the Nisga'a First Nation, requires a key decision by environmental regulators before it can proceed. Ksi Lisims, which this month signed an agreement with French energy giant TotalEnergies SE to buy some of the liquefied natural gas from the project, needs a re-approval from the B.C. Environmental Assessment Office for the pipeline that would serve its plant. Ksi Lisims, with partner Western LNG, applied in November for a ruling from the assessment office that initial work undertaken on the Prince Rupert Gas Transmission line was enough to satisfy a requirement for 'substantial start' of construction by late last year. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. No one from the environmental assessment office was made available for an interview, but an email in response to Postmedia questions said the office expects to make its decision this spring. The Prince Rupert Gas Transmission line, under then-owner Calgary-based TC Energy, received environmental approval for the proposed 780-kilometre, 1.2-metre diameter pipeline in 2014. The pipeline was later bought by the Nisga'a and Western LNG. A five-year permit extension granted in 2019 required a substantial start of construction before November 2024 or it would expire. A recent assessment office email said the determination is an administrative decision and the necessary time is being taken to review all relevant information needed to decide whether work clearing work the right of way constitutes a substantial start. Ksi Lisims is supported by the Nisga'a Nation, which views the project as a cornerstone of its economic development. But it is opposed by other First Nations, including the Gitanyow Nation whose territory the pipeline would cross on 50 kilometres of its route, and a consortium of environmental groups. The email from the assessment office said the decision will be based on information provided by the pipeline's partners and First Nations and consultation with those nations 'throughout this process.' In the meantime, other B.C. LNG projects, with the potential to export about 34 million tonnes of natural gas annually, are proceeding at varying stages of construction. The most advanced is LNG Canada in Kitimat. It received a shipment of imported liquefied natural gas in April to use in testing equipment during its commissioning process. It expects to be producing its first gas for export within a few months. Construction on the $18-billion LNG Canada plant, a joint venture of Shell Canada, Malaysian state-owned Petronas, PetroChina, Mitsubishi Corp. and Korean Gas Corp. started in 2019, along with its associated $14.5-billion Coastal GasLink pipeline, which is owned by TC Energy. At its outset, LNG Canada's two initial production units, referred to as 'trains' in the industry, will have the capacity to produce up to 14 million tonnes of liquefied natural gas a year. Partners in the consortium are considering a Phase 2 of the project to expand its capacity to 26 million tonnes of LNG a year. That Phase 2 expansion has political support in B.C. with Premier David Eby including the project on the list of major resource projects the projects is willing to 'fast track' to shore up the economy during the uncertainty of Canada-U.S. trade tensions. Woodfibre LNG, a subsidiary of Singapore-headquartered Pacific Energy Corp. received environmental approval for the its $5.1 billion LNG proposal in 2015 and kicked off major construction in 2023 with an expected completion date of 2027, according to Woodfibre. It is expected to have the capacity to produce up to 2.1 million tonnes of LNG a year. The project consists of the Woodfibre LNG plant, seven kilometres south of Squamish on the west side of Howe Sound on the former site of the Woodfibre pulp mill, and the Eagle Mountain pipeline, a 50 kilometre extension of FortisBC's pipeline network from Coquitlam. Woodfibre submitted an application in May seeking permission to moor an additional cruise-ship 'floatel' as accommodations for 900 workers alongside its initial 'floatel,' the MV Isabelle X, which houses 650 construction workers, to speed up progress. Cedar LNG, majority owned by the Haisla First Nation, is a joint venture with Calgary-headquartered Pembina Pipeline Corp. The proposal, in 2023, received environmental approval to build a floating LNG production facility on the Douglas Channel south of LNG Canada's project. The Cedar LNG joint venture made its final investment decision for the US$4 billion construction of the facility. Contractors Black & Veatch and Samsung Heavy Industries will build the plant's floating platform at shipyards in South Korea and transport it to the site, with an expected completion date in 2028. Once in commission, the plant will have the capacity to produce up to 3.3 million tonnes of LNG a year. FortisBC's original Tilbury LNG plant in Delta was opened in 1971 to produce LNG to be stored for times of peak demand in its domestic system. In 2018, a Phase 1 expansion increased its capacity to 250,000 tonnes of LNG a year to meet increasing domestic demand for use of gas as transportation fuel in trucking and in shipping. A Phase 2 projects remains under review by the environmental assessment office. Construction would start in 2026, expanding production to 2.5 million tonnes of LNG a year to supply domestic demand, but also open the potential for exports. depenner@
Calgary Herald
21-05-2025
- Business
- Calgary Herald
French oil giant TotalEnergies returns to Canada with bet on burgeoning LNG industry
Article content French oil major TotalEnergies SE has secured a toehold in Canada's emerging liquefied natural gas industry, signing long-term agreements with the proponents of Ksi Lisims LNG, a proposed export terminal on the northwest coast of British Columbia. Article content The deal announced Monday would see TotalEnergies purchase two million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Nisga'a Nation-backed project over a period of 20 years. It marks the second major offtake, or pre-purchase, agreement for the floating LNG terminal on Pearse Island, north of Prince Rupert, which signed a similar deal with global energy giant Shell in 2023. Article content Article content Locking in long-term buyers for its natural gas exports, scheduled to begin in 2029, is critical if project backers Western LNG, Rockies LNG and the Nisga'a Nation are to give the project the green light, with a final investment decision (FID) expected later this year. Article content Article content Under the agreements, TotalEnergies is also acquiring a five per cent stake in project developer, shareholder and future operator Western LNG, with the option of increasing that stake or taking a direct ownership share in the Ksi Lisims project of up to 10 per cent. Article content 'TotalEnergies is the largest purchaser of North American LNG, and one of the largest producers and portfolio players in the world,' Davis Thames, president and chief executive of Western LNG said in a statement. 'Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets.' Article content Article content The announcement also marks a significant return by TotalEnergies to Canada's oil and gas sector after its high-profile exit from the oilsands in 2023; at the time, the company said it was divesting its oilsands interests in order to focus on plays with lower breakeven points, in a move that was hailed by some analysts as a positive given increased investor interest in lower carbon energy. Article content
Vancouver Sun
20-05-2025
- Business
- Vancouver Sun
French oil giant TotalEnergies returns significantly to Canada with bet on burgeoning LNG industry
French oil major TotalEnergies SE has secured a toehold in Canada's emerging liquefied natural gas industry, signing long-term agreements with the proponents of Ksi Lisims LNG , a proposed export terminal on the northwest coast of British Columbia. The deal announced Monday would see TotalEnergies purchase two million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Nisga'a Nation-backed project over a period of 20 years. It marks the second major offtake, or pre-purchase, agreement for the floating LNG terminal on Pearse Island, north of Prince Rupert, which signed a similar deal with global energy giant Shell in 2023. Locking in long-term buyers for its natural gas exports, scheduled to begin in 2029, is critical if project backers Western LNG, Rockies LNG and the Nisga'a Nation are to give the project the green light, with a final investment decision (FID) expected later this year. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Under the agreements, TotalEnergies is also acquiring a five per cent stake in project developer, shareholder and future operator Western LNG, with the option of increasing that stake or taking a direct ownership share in the Ksi Lisims project of up to 10 per cent. 'TotalEnergies is the largest purchaser of North American LNG, and one of the largest producers and portfolio players in the world,' Davis Thames, president and chief executive of Western LNG said in a statement. 'Their experience with development and operations will be a welcome addition to the project as we move steadily toward FID later this year so that we can provide reliable, low-carbon Canadian LNG to growing global markets.' The announcement also marks a significant return by TotalEnergies to Canada's oil and gas sector after its high-profile exit from the oilsands in 2023; at the time, the company said it was divesting its oilsands interests in order to focus on plays with lower breakeven points, in a move that was hailed by some analysts as a positive given increased investor interest in lower carbon energy. Ksi Lisims will have a total export capacity of about 12 Mtpa or 1.58 billion cubic feet per day (Bcf/d) once complete and is planned to be fully electrified, powered through a tie-in to BC Hydro's planned North Coast transmission line. 'TotalEnergies shares our vision of bringing cleaner energy to the world, advancing Indigenous leadership in the global economy and sharing our deep commitment to environmental stewardship,' Eva Clayton, president of Nisga'a Lisims government said in a statement. The project is currently under review by the B.C. Environmental Assessment Office. However, the environmental review is not the only hurdle for Ksi Lisims. B.C. Environment Minister Tamara Davidson is soon expected to make a key determination on a related regulatory matter over the Prince Rupert Gas Transmission (PRGT) project, the pipeline that will supply feed gas to the Ksi Lisims LNG export terminal. While PRGT received its initial environmental permits in 2014, it was required to have been 'substantially started' by November 2024 in order to maintain its environmental certificate. The project's proponents, the Nisga'a Nation and Western LNG, say construction started in August 2024, but those claims have been challenged by some Indigenous and environmental opponents who say the activities were limited and don't meet the threshold for a substantial start. The country's largest and most advanced LNG export project remains the Shell-backed LNG Canada terminal in Kitimat B.C., the first phase of which is reportedly set to begin loading cargo in June; a second phase, which would double the facility's capacity to 3.68 Bcf/d, is still uncertain. If Ksi Lisims LNG is approved, and LNG Canada's owners green light a second phase, the country's total approved LNG export capacity could reach nearly six Bcf/d. Tourmaline Oil Corp. chief executive Michael Rose said there are multiple large Canadian gas producers lined up to supply the project through the Rockies LNG partnership. 'Hopefully, there's Canadian momentum to start approving these projects,' Rose said on a recent earnings conference call prior to TotalEngergies' announcement. 'Because (of) just how important LNG is to Canada, because it's great for the economy of the entire country; it reduces emissions in the global atmosphere and it's a great opportunity for improving Indigenous prosperity.' mpotkins@ Bookmark our website and support our journalism: Don't miss the business news you need to know — add to your bookmarks and sign up for our newsletters here.
